ELSS Tax Savings Calculator

Equity Linked Savings Scheme (ELSS) is a category of open-ended equity mutual funds that qualifies for tax deduction under Section 80C of the Income Tax Act. Investments up to ₹1.5 lakh per financial year in ELSS reduce your taxable income by the same amount. For a taxpayer in the 30% slab, this translates to a direct tax saving of ₹46,800 (₹1.5 lakh × 31.2% including cess).

ELSS has the shortest lock-in period of any 80C instrument — just 3 years. PPF has a 15-year lock-in. NSC has a 5-year lock-in. Tax-saver FDs have a 5-year lock-in. ELSS's 3-year lock-in aligns with the minimum recommended equity holding period, making it the only 80C option that genuinely works as a wealth-building instrument rather than just a tax-saving one.

Returns from ELSS after the 3-year lock-in are taxed as Long Term Capital Gains (LTCG) at 12.5% on gains above ₹1.25 lakh per year. This is far more favourable than FD interest taxed at your income slab (30% for the highest bracket), NSC interest taxed at slab, and PPF interest which is tax-free but yields only 7.1% (as of 2026). Over a 10-year period, ELSS has historically delivered 12–14% CAGR, making it the highest-returning 80C instrument despite the LTCG tax.

Use this calculator to estimate your 80C tax savings via ELSS based on your annual ELSS investment amount and income tax slab. The calculator shows gross tax saved and the effective post-tax cost of your ELSS investment. Combine this with the CAGR calculator to project the corpus your ELSS investment will generate. Consult a chartered accountant for personalised tax advice. This calculator is for estimation and educational purposes only.