ELSS Calculator

How does this tool compute the maturity value?

For a SIP it divides the annual return by 12, treats every instalment as paid at the start of its month, and sums the compounded instalments over tenure × 12 months. For a lumpsum it compounds once a year: amount × (1 + return)^years. Both assume the same return in every year, so it is an arithmetic illustration and not a projection of any fund.

How is the LTCG line worked out?

The tool subtracts a flat ₹1,25,000 exemption from the total gain, applies 12.5% to the remainder and adds 4% cess. These are the Section 112A figures built into this tool for listed equity and equity-oriented funds (transfers on or after 23 July 2024), and they are applied once to the whole gain as if everything were redeemed on the last day. Rules change in most Union Budgets and the tool is not updated automatically, so confirm the current rate and exemption with the Income Tax Department or a chartered accountant.

How is the 80C tax saving calculated?

The yearly amount invested (SIP amount × 12, or the lumpsum) is capped at ₹1,50,000, multiplied by the bracket you pick (5%, 20% or 30%) and then by 1.04 for cess. For a SIP the yearly saving is repeated for every year of the tenure; for a lumpsum it is counted once, because the money goes in once.

Does the 80C line apply under the new tax regime?

The tool does not check your regime. The 80C line is an old-regime illustration, and it assumes none of your ₹1,50,000 limit is already used by EPF, a home-loan principal repayment, life insurance or other items. If part of the limit is used elsewhere, the saving shown here is overstated.

What does the 3-year lock-in mean in the results?

The tool prints “3 years per SIP instalment” and raises a tenure of 1 or 2 years to 3. A tenure of 0, which is also what a cleared box becomes, falls back to 5 years. It does not model each instalment becoming redeemable on its own date; the whole maturity value is shown at the end of the tenure.

What happens with a zero return?

A return of 0, which is also what a cleared box becomes, is respected: a SIP of ₹5,000 a month for 3 years at 0% returns ₹1,80,000 with no gain and no tax line, and a lumpsum of ₹50,000 returns ₹50,000.

What costs and risks are left out?

Expense ratio, exit load, market falls, dividends, stamp duty, inflation, surcharge on high incomes and the possibility of staggered redemptions are not modelled. The only inputs are amount, tenure, return and bracket, so the output cannot show how a real fund behaved.