ReckonBoxHow the ELSS calculator works
An ELSS calculator projects what an equity linked savings scheme grows to, alongside the two tax numbers that make the scheme worth using: the Section 80C deduction it earns now, and the long-term capital gains tax due when you redeem. Most ELSS calculators stop at the maturity value, which is the same thing a plain SIP tool shows. This one adds the tax layer, because the tax is the reason people pick ELSS over an ordinary fund.
Feed it a monthly SIP or a one-time lumpsum, an expected return, a tenure, and your tax slab. It projects the corpus by compounding, then works out the 80C benefit at your slab and the LTCG owed on the gains. A Rs 12,500 monthly SIP at 12 percent for five years reaches about Rs 10.31 lakh on Rs 7.5 lakh invested, saves Rs 46,800 in tax each year at the 30 percent slab, and hands back about Rs 20,290 in LTCG at the end.
The Section 80C tax it saves now
ELSS lets you deduct up to Rs 1,50,000 of the amount you invest in a financial year under Section 80C, and that deduction exists only under the old tax regime. The tax it saves is that deduction multiplied by your marginal slab, plus the 4 percent health and education cess. So the saving depends entirely on your bracket.
| Tax slab (old regime) | Deduction used | Tax saved (with 4% cess) |
|---|---|---|
| 30% | Rs 1,50,000 | Rs 46,800 |
| 20% | Rs 1,50,000 | Rs 31,200 |
| 5% | Rs 1,50,000 | Rs 7,800 |
Two things trip people up. The deduction is capped at Rs 1.5 lakh a year, so investing Rs 3 lakh in ELSS still deducts only Rs 1.5 lakh, and the calculator stops the saving at that ceiling. And a SIP claims the deduction every year you keep investing, while a single lumpsum claims it once, in the year you invest.
The 3-year lock-in and how ELSS is taxed at exit
ELSS carries a 3-year lock-in, the shortest among Section 80C options, so no unit can be redeemed until three years after it was bought. In a SIP, each instalment locks separately for three years from its own date, so a January instalment frees up before a June one. That lock-in has a clean tax side effect: every ELSS redemption is automatically long-term, and it never attracts short-term capital gains tax.
Long-term gains on equity, including ELSS, are taxed at 12.5 percent above a Rs 1,25,000 exemption per financial year, for sales made on or after 23 July 2024. The exemption is per investor, shared across all your equity funds and shares, rather than one allowance per scheme. On a Rs 2,00,000 gain, the first Rs 1,25,000 is free and the remaining Rs 75,000 is taxed, which is about Rs 9,375 before cess.
A worked example
Picture a Rs 12,500 monthly SIP, which is exactly Rs 1.5 lakh a year, run for five years at an assumed 12 percent. The calculator projects a corpus of about Rs 10.31 lakh on Rs 7.5 lakh invested, a gain of roughly Rs 2.81 lakh.
| What ELSS does here | Amount |
|---|---|
| Maturity value | Rs 10,31,080 |
| Total invested | Rs 7,50,000 |
| 80C tax saved per year (30% slab) | Rs 46,800 |
| Total 80C benefit over 5 years | Rs 2,34,000 |
| LTCG due at redemption | Rs 20,290 |
| Value after LTCG | Rs 10,10,790 |
The Rs 2.34 lakh of tax saved across the five years is real money the projection never shows, and it dwarfs the Rs 20,290 the gains give back at the end. That gap is the case for ELSS in one line, and it only holds under the old regime.
New regime or old regime for ELSS
Choosing the regime flips half of this tool off. Under the new tax regime, which became the default from FY 2025-26, the Section 80C deduction is gone, so an ELSS investment saves nothing upfront and behaves like any other equity fund with a lock-in. Set the calculator to the new regime and the 80C figure drops to zero, which is the honest picture for anyone who has moved to the default.
That does not make the fund pointless under the new regime, since the equity growth remains, but the 3-year lock-in stays without the deduction that used to justify it. Whether the old regime with its deductions beats the lower-rate new regime is a personal calculation that depends on all your other 80C and 80D claims.
What this does not promise
ELSS invests in equities, so the maturity value here is a projection from the rate you assume, and actual returns swing year to year and can land higher or lower. The 80C and LTCG figures follow the current rules as of the 2026-27 financial year, and tax law changes, so treat them as an estimate. Because this touches your money and your taxes, it is a planning tool and not investment or tax advice, and a SEBI-registered adviser or a qualified tax professional can check your specific case. For a plain projection without the tax layer, the SIP calculator and the lumpsum calculator cover any equity fund.
Frequently asked questions
What is an ELSS calculator? An ELSS calculator estimates what an equity linked savings scheme grows to, and the tax around it: the Section 80C deduction it earns now and the long-term capital gains tax due when you redeem. It takes a monthly SIP or a lumpsum, an expected return, a tenure, and your tax slab.
How much tax does ELSS save under Section 80C? ELSS lets you deduct up to Rs 1,50,000 of the amount invested in a financial year under Section 80C, available only under the old tax regime. At the 30 percent slab that full deduction saves Rs 46,800 including the 4 percent cess, at 20 percent it saves Rs 31,200, and at 5 percent Rs 7,800.
Does ELSS save tax under the new regime? No. The Section 80C deduction is available only under the old tax regime, and the new regime is now the default. If you file under the new regime, an ELSS investment gives no upfront tax deduction, though it still works as an equity fund with a 3-year lock-in.
What is the lock-in period for ELSS? ELSS has a 3-year lock-in, the shortest of the Section 80C options, so you cannot redeem before three years from the date of each investment. In a SIP, every instalment carries its own three-year lock-in from its own date.
How is ELSS taxed when I redeem? Because the lock-in makes every ELSS holding long-term, redemptions are taxed as long-term capital gains: 12.5 percent on gains above a Rs 1,25,000 exemption in a financial year, for sales on or after 23 July 2024. ELSS never attracts short-term capital gains tax, since early redemption is not allowed.
How is the LTCG on ELSS calculated? Subtract the Rs 1,25,000 annual exemption from your total equity gains, then tax the rest at 12.5 percent. On a Rs 2,00,000 gain, Rs 75,000 is taxable and the tax is about Rs 9,375 before cess. The exemption is per investor per year and is shared across all your equity funds and shares.
Is ELSS return guaranteed? No. ELSS invests in equities, so returns are market-linked and vary year to year. This calculator projects a value from the rate you assume, which is a planning estimate, and the actual maturity value can be higher or lower.
Can I invest more than Rs 1.5 lakh in ELSS? Yes, there is no upper limit on how much you can invest in ELSS, but the Section 80C deduction is capped at Rs 1,50,000 a year. Any amount above that grows in the fund without an extra deduction, which is why the tax saved in this calculator stops rising past Rs 1.5 lakh a year.
ELSS or PPF for tax saving? Both qualify for the Section 80C deduction, but they differ on lock-in and risk. ELSS locks in for 3 years and is market-linked, while PPF locks in for 15 years at a government-set rate. The right fit depends on your horizon and how much market swing you can hold, so weigh both against your goal.