About the ELSS vs PPF Calculator
What is the ELSS vs PPF Calculator?
ELSS (equity-linked savings schemes) and PPF are both popular ways to use the ₹1.5 lakh Section 80C deduction under the old tax regime. ELSS vs PPF is a trade-off: ELSS has the shortest lock-in (3 years) and equity-level return potential, while PPF offers a guaranteed, fully tax-free return with a 15-year lock-in.
Enter the yearly amount, the period and the expected returns. The calculator projects both, deducts long-term capital gains tax from ELSS (assuming you redeem in one year) and shows which comes out ahead after tax.
How to use the ELSS vs PPF Calculator
- Yearly Investment (₹) (sample: 1,50,000)
- Investment Period (years) (sample: 15)
- Expected ELSS Return (% per year) (sample: 12)
- PPF Interest Rate (% per year) (sample: 7.1)
- Press Compare ELSS and PPF (results also refresh as you type). The result card shows the Post-Tax Advantage, along with ELSS value after LTCG tax, PPF maturity (tax-free), ELSS LTCG tax (if redeemed in one year) and Total invested.
Formula used
FV = A × ((1 + r)ⁿ − 1) ÷ r × (1 + r)
- A = the yearly investment, made at the start of each year
- ELSS tax = 12.5% × 1.04 on gains above ₹1.25 lakh
- PPF tax = nil (EEE)
ELSS returns are market-linked and not guaranteed; PPF's rate is reset quarterly by the government.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Yearly Investment (₹) | 1,50,000 |
| Investment Period (years) | 15 |
| Expected ELSS Return (% per year) | 12 |
| PPF Interest Rate (% per year) | 7.1 |
| Result | Value |
|---|---|
| Post-Tax Advantage | ELSS ahead by ₹16,89,344 |
| ELSS value after LTCG tax | ₹57,57,553 |
| PPF maturity (tax-free) | ₹40,68,209 |
| ELSS LTCG tax (if redeemed in one year) | ₹5,05,439 |
| Total invested | ₹22,50,000 |
Tips for using the ELSS vs PPF Calculator
- Each ELSS SIP instalment has its own 3-year lock-in.
- Redeeming ELSS gradually across financial years uses the ₹1.25 lakh exemption more than once.
- Many investors split 80C between PPF (stability) and ELSS (growth).