ELSS vs PPF

ELSS vs PPF — ELSS Calculator

ELSS vs PPF is the classic 80C trade-off. PPF: 15-year lock-in, an administered rate near 7.1% that the government resets each quarter, EEE tax status. ELSS: 3-year lock-in per instalment, market-linked, 12.5% LTCG above ₹1.25L/year. One is certain and slow; the other is neither, and the choice is really about which you can hold.

Monthly ELSS SIP

₹500₹12,500

80C caps deduction at ₹1.5 L/year (₹12,500/mo)

Old-regime tax slab30%

ELSS / 80C is available only under the old regime.

Investment horizon

3 years30 years

3-year lock-in per instalment

Expected annual return

6%16%

80C deduction / year

₹1.50 L

Tax saved / year

₹45.0 K

Tax saved in 15 y

₹6.75 L

Final wealth

₹63.07 L

INSIGHTA ₹12,500/mo ELSS SIP at the 30% slab saves you ₹45.0 K in tax each year. Over 15 years that’s ₹6.75 L back in your pocket, plus an estimated ₹60.34 L in post-LTCG wealth.

Post-tax estimate assumes equity LTCG at 12.5% above ₹1.25 L/year exemption. Each SIP instalment locks in for 3 years from its purchase date.

3 schemes that fit your plan

Matching…

Shortlisted by category, horizon and cost — not a recommendation of the “best” fund. Read scheme documents before investing. Mutual fund investments are subject to market risks.

The pure math, 15-year horizon

A ₹1.5 lakh/year contribution at 7.1% (PPF) for 15 years builds roughly ₹40 lakh — fully tax-free at maturity. The same ₹1.5 lakh/year in ELSS at 12% builds roughly ₹62 lakh pre-tax, ~₹60 lakh after LTCG. Equity ELSS comes out ~50% ahead on return.

The catch: equity returns are not linear. A 30% drawdown in years 7-9 is a real possibility — and emotionally hard to ride through. PPF's certainty has behavioural value, not just mathematical.

The right answer is usually 'both'

Most planners suggest allocating part of the 80C limit to PPF (the safety/certainty leg) and part to ELSS (the growth leg). A 50-50 split is a reasonable default for an investor in their 30s; the ELSS share can be higher for younger investors with longer horizons.

PPF also serves as the EEE-tax debt portion of your overall portfolio — useful for asset-allocation reasons beyond just 80C.

Liquidity matters more than people think

PPF allows partial withdrawal only from year 7, capped at 50% of the year-4 balance. ELSS becomes fully liquid 3 years after each instalment. If you might need the money before 15 years for an emergency or goal, the ELSS liquidity is materially valuable.

Request a callback and we'll help you split your 80C across PPF, ELSS and (if relevant) NPS 80CCD(1B) in whatever proportion balances return, certainty and liquidity for you.

Other elss calculator use-cases

Same calculator, different goal defaults.

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More on elss calculator

See what an ELSS SIP saves you at your slab, and what survives LTCG at the end. The 80C deduction is old-regime only — this tool says so instead of assuming it.

Read the full elss calculator guide

Read on the blog

FAQ

What is the ELSS lock-in?

ELSS mutual funds have a hard 3-year lock-in from the date of each unit purchase. In a SIP, every monthly instalment locks in independently — your January 2026 units can be redeemed only in January 2029.

Is ELSS available under the new tax regime?

Section 80C deductions, including ELSS, are not available under the new tax regime (introduced FY24, default from FY24-25). Only investors who opt into the old regime benefit from the 80C deduction. The investment itself remains accessible; only the deduction is regime-gated.

How matching works

Set the monthly SIP amount. ₹12,500/mo uses the full 80C cap of ₹1.5 L. Lower it if you have EPF, PPF, or insurance premium absorbing part of 80C.
Pick your old-regime slab. 30% slab benefits most. Below the 20% slab the new regime usually wins overall.
Choose a horizon. 5+ years is the practical minimum — equity volatility hurts shorter holding windows.
Read the tax + wealth output. The calculator separates the annual tax saving from the post-LTCG terminal wealth.
Get matched schemes. Request a callback; we'll suggest 2-3 ELSS funds with strong rolling returns and clean expense ratios.