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ELSS Return Calculator
This ELSS return calculator projects how an investment in an ELSS (equity linked savings scheme) mutual fund could grow. Choose a monthly SIP or a one-time lump sum, set the return you expect, and see the amount invested, the estimated gains and the maturity value. ELSS is the mutual fund category that also gives a tax deduction: investments qualify under Section 80C up to ₹1.5 lakh a year — under the old tax regime only — and every investment is locked in for 3 years, the shortest lock-in among 80C options. Remember that ELSS returns are market-linked and never guaranteed; the rate here is your assumption, not a promise.
| Total invested | |
| Estimated gains | |
| Maturity value | |
| Lock-in |
How to use this ELSS calculator
- Choose SIP if you invest every month, or lump sum for a single deposit.
- Enter the amount — your monthly SIP, or the one-time sum.
- Set the expected yearly return. Long-term equity funds have historically been estimated around 10–12% a year for planning, but past performance does not guarantee future returns.
- Enter the period in years. Three years is the lock-in minimum; ELSS works best over 7–10 years or more.
- Read the invested amount, estimated gains and maturity value.
How ELSS returns are calculated
For a SIP, each monthly instalment is treated as invested at the start of its month and compounds monthly at one-twelfth of the yearly rate — the standard annuity-due method used by SIP calculators. For a lump sum, the amount compounds once a year.
Two ELSS facts matter as much as the return. The 3-year lock-in applies to every instalment separately: each SIP instalment can be withdrawn only after its own 3 years are complete, so a 10-year SIP does not free up all at once in year 10 — the last instalment unlocks in year 13. And the 80C benefit: up to ₹1.5 lakh invested in a financial year can be deducted from taxable income, but only under the old tax regime. If you file under the new regime, ELSS is simply a mutual fund choice with a lock-in — compare it with a plain flexi-cap fund before choosing it only for the tax break.
Worked example
A SIP of ₹10,000 a month at an assumed 12% a year for 10 years:
- Total invested = ₹10,000 × 120 months = ₹12,00,000
- Maturity value = ₹23,23,391 (rounded)
- Estimated gains = ₹23,23,391 − ₹12,00,000 = ₹11,23,391
The same ₹10,000 a month for just the 3-year lock-in period would grow to about ₹4,35,076 at the same assumed rate — most of the power of a SIP comes from staying invested well past the lock-in. As a lump sum comparison, a single ₹1,00,000 at 12% for 10 years becomes ₹3,10,585. Enter these figures above and the calculator will show the same results.
SIP growth at 12% assumed return
| Monthly SIP | Period | Invested | Maturity value |
|---|---|---|---|
| ₹5,000 | 5 years | ₹3,00,000 | ₹4,12,432 |
| ₹5,000 | 10 years | ₹6,00,000 | ₹11,61,695 |
| ₹10,000 | 10 years | ₹12,00,000 | ₹23,23,391 |
| ₹12,500 | 10 years | ₹15,00,000 | ₹29,04,238 |
The ₹12,500 row is the SIP that uses the full ₹1.5 lakh yearly 80C limit. All figures assume a steady 12% — real funds move up and down, so treat these as planning numbers, not forecasts.
Frequently asked questions
What is the lock-in period of ELSS?
Every ELSS investment is locked in for 3 years from its date of investment — the shortest lock-in among Section 80C options (PPF is 15 years, NSC 5 years). With a SIP, the lock-in applies instalment by instalment: the instalment invested in January 2026 can be withdrawn from January 2029, the February instalment from February 2029, and so on. You cannot break the lock-in early for any reason.
How much tax can ELSS save under 80C?
Investments in ELSS qualify for the Section 80C deduction of up to ₹1.5 lakh per financial year, shared with other 80C items like EPF, PPF and life insurance premiums — and only under the old tax regime. The actual tax saved depends on your slab: at the 30% slab a full ₹1.5 lakh deduction saves about ₹46,800 including cess; at the 20% slab about ₹31,200. Under the new tax regime there is no 80C deduction at all.
Are ELSS returns guaranteed like PPF or NSC?
No. ELSS funds invest in shares, so returns move with the market and can be negative over short periods. The return rate in this calculator is an assumption you set for planning — 12% is a commonly used long-term estimate, not a promise by any fund. Government schemes like PPF and NSC pay a fixed, notified rate; ELSS offers higher potential growth in exchange for market risk.
How are ELSS gains taxed when I withdraw?
ELSS is an equity mutual fund, so long-term capital gains tax applies when you sell after the lock-in: gains above ₹1.25 lakh in a financial year are taxed at 12.5% (as per the rules in force for 2025). There is no short-term rate because the 3-year lock-in means you can only sell after three years anyway. Tax rules change in budgets, so check the current rate when you actually withdraw.
SIP or lump sum — which is better for ELSS?
For most salaried investors, a SIP fits better: it matches monthly income, spreads purchases across market levels, and ₹12,500 a month uses the full ₹1.5 lakh 80C limit exactly. A lump sum suits money that arrives at once, such as a bonus received early in the financial year. Either way, remember each amount carries its own 3-year lock-in from its investment date.