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- ₹1
- ₹10 L
- 1 Year
- 40 Years
- 1%
- 40%
Total amount invested
₹10,000
Returns
₹10,000
Total wealth accumulated
₹10,000
The ELSS Calculator: A handy tool for investors
An ELSS Calculator is an invaluable online tool for estimating your Mutual Fund investment's future value. It calculates the expected returns for both lump sum and SIP (Systematic Investment Plan) investments. Just input details like the fund name, investment amount and duration, the calculator does the rest, showing you the maturity value, total invested amount and the gains earned.
How does the ELSS Calculator work?
Equity Linked Savings Scheme (ELSS) calculators help investors calculate a rough estimate of the amount their investments in an ELSS mutual fund will grow in a certain time. The user provides some key inputs, such as the amount of money to be invested, the tenure of investment, the expected rate of return, and the frequency of their investments if they opt for a Systematic Investment Plan (SIP).
The compounding algorithm factors in the expected rate of return and the compounding effects, which involve the systematic reinvestment of earned interest back into the principal amount at regular intervals.
Further, ELSS calculators incorporate tax benefits linked to ELSS investments under Section 80C of the Income Tax Act, which can help investors better understand their actual return.
ELSS calculators are built for ease of use and offer flexibility to experiment with different amounts, interest rates, and tenure. This flexibility enables investors to make informed decisions while tailoring their investment strategy to meet their financial objectives.
Using the ELSS Calculator: A step-by-step guide
Advantages of using the ELSS Calculator
Tax saving estimation
It helps you calculate how much you can save on taxes
Projection of returns
Assists in making informed decisions about investment amounts and duration
Scenario analysis
Estimates potential returns based on different investment amounts or rates of return
User-friendly
Easy to use without needing specialised knowledge
Insightful
Offers insights like fund rankings and other key details to aid investment decisions
What makes ELSS stand out?
Offers up to Rs. 46,800 tax deduction annually, under Section 80C
Invests in equity-linked securities across various sectors
Compared to other tax-saving options like PPF and FD
Among tax-saving options under Section 80C
Option to invest through SIP or a lump sum
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The gains from ELSS funds are subject to tax. Long-term capital gains up to Rs. 1,00,000 are tax-exempt, with gains above this threshold taxed at 10%. Dividends are added to your income and taxed accordingly.
ELSS Calculator FAQs
Does the ELSS calculator consider the market conditions?
No, the ELSS calculator does not factor in market conditions. However, investors can adjust their calculations by experimenting with the rate of interest, principal amount, and tenure to better understand their expected returns under various scenarios.
Is the ELSS Calculator accurate?
The ELSS calculator works best with a compounding algorithm and gives investors accurate expectations from their investments. It factors in the expected rate of return and the compounding effects, which involve the systematic reinvestment of earned interest back into the principal amount at regular intervals.
How often should I use an ELSS calculator to monitor my investments?
Investors are advised to use the ELSS calculator before making an investment to understand various factors affecting their returns to make the best decision to fulfil their financial goals. They are also advised to check for changes in the rate of interest frequently to get a fair idea of how their investments are growing.
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