What is ELSS Tax Saving?
ELSS (Equity Linked Savings Scheme) is the only mutual fund category that qualifies for tax deduction under Section 80C (up to ₹1.5 Lakh/year). It has the shortest lock-in among 80C instruments — just 3 years.
ELSS funds invest primarily in equities and have historically returned 12-15% CAGR over 10+ years, making them the highest-returning 80C investment option.
Formula
Future Value = P × [((1+r)^n − 1) / r] × (1+r) Tax Saved = min(Annual Investment, ₹1,50,000) × Tax Bracket% ELSS vs other 80C instruments: ELSS: 12-15% returns, 3-year lock-in PPF: 7.1%, 15-year lock-in NSC: 7.7%, 5-year lock-in Tax-saving FD: 6-7%, 5-year lock-in
How to use this ELSS Tax Saving Calculator?
1. Enter monthly SIP amount (max ₹12,500/month for full 80C benefit). 2. Set expected return (12-15% for diversified ELSS). 3. Enter investment period (minimum 3 years). 4. Select your tax bracket. 5. See returns and annual tax savings.