ELSS Calculator

ELSS mutual funds allow you to earn returns and get tax benefits. With ELSS, you can earn returns similar to stocks and stock-related assets. So, one can potentially earn returns higher than fixed deposit interest rates. At the same time, ELSS investments also qualify for tax benefits under Section 80C of the Income Tax Act. An individual can get a tax rebate of ₹1.5 lakh and save up to ₹46,800 per year in taxes.   

There are various ELSS funds available in the market. Naturally, one would need to compare them all to find which ELSS scheme best suits their needs. An individual can use the ELSS calculator to pick the best ELSS alternative available in the market.    

What does ELSS stand for? 

ELSS is an abbreviation that stands for Equity-Linked Savings Scheme. In India, it is a mutual fund that combines tax advantages with possible stock market profits. ELSS investments are deductible under Section 80C of the Income Tax Act, making them a popular choice for tax-efficient wealth building.   

What is the ELSS calculator? 

The ELSS calculator is a valuable tool for estimating the value of your investment over time and at a specific rate of return. 

These calculators frequently allow you to choose between systematic investment plans (SIPs) and lump sum investments, allowing you to personalize your strategy.  

Furthermore, you may come across an ELSS tax saving calculator, which can be extremely useful in estimating the tax benefits associated with a specific investment amount.  

This valuable tool not only assists in making informed investment decisions but also highlights prospective cash advantages and tax benefits, promoting a more comprehensive grasp of your financial strategy.   

Whether you consider SIPs or lumpsum investments, the ELSS calculator provides information that can significantly influence your investment decisions, allowing you to chart a more direct path toward financial objectives.  

How does the ELSS calculator work, and how does it help you? 

An ELSS return calculator will help you estimate your returns from SIP and lumpsum investments into ELSS mutual funds. As input, the calculator will take the following variables: 

1. Monthly contribution 

When using the ELSS calculator for SIP investments, you must input an amount ranging between ₹500 and ₹1,00,000. 

2. Lumpsum investment amount 

Opting for the lumpsum investment mode in the ELSS calculator requires you to input an amount. This amount is flexible, ranging from ₹500 to ₹10,00,000. 

3.  Expected rate of return 

Although it is impossible to predict the rate of return on ELSS funds, you can enter an expected rate of return ranging from 1% to 30% per annum. 

4. Tenure 

Here, enter the period for your investment. It ranges from 1 to 40 years. 

As the output, the ELSS mutual fund calculator will give the final value of your investment and the value of returns. 

ELSS calculator online helps you find the estimated returns for a combination of investment type, amount, tenure, and expected rate of return. 

How to use the ELSS calculator? 

The ELSS calculator is simple to use and completes in a few simple steps: 

• Select an Investment Mode: Initially, decide on your preferred investment mode, SIP (Systematic Investment Plan) or lump sum. 
• Enter Your Investment Amount: Enter the amount you want to invest. If you choose SIP, enter the monthly investment amount in Indian Rupees (INR). Enter the lumpsum investment amount in INR for lumpsum. 
• Expected Rate of Return: Enter the expected rate of return in percentage form. While the precise rate of return is unknown, you can enter an estimate ranging from 1% to 30% every year. 
• Tenure: Enter the investment's tenure in years. Tenure is the time frame for which you want to hold the investment. You can select any period between 1 and 40 years. 
• Calculate Results: Once you provide these parameters, the ELSS calculator will compute and display estimated returns and the final value of the investment based on your inputs. 
• Change the inputs: Experiment with different scenarios by changing the investment amount, rate of return, or tenure. The calculator will recalculate findings automatically, providing insights into numerous possible outcomes. 

By following these steps, you may use the ELSS calculator's power to make informed investment decisions, allowing you to align your financial goals with the best investment strategy. 

How to calculate the ELSS maturity amount? 

The best way to calculate the ELSS maturity amount is to use Shriram Finance’s ELSS calculator.  

 The formula for ELSS amount calculation 

Use the following formula for calculating the lumpsum ELSS investment maturity amount by hand: 

ELSS maturity amount = Investment amount X (1 + Expected rate of return) ^ Number of years 

Use the following formula for calculating the SIP ELSS investment maturity amount by hand: 

ELSS maturity amount = SIP amount X {[(1 + Expected monthly return) ^ Number of months -1]/ Expected monthly return} X (1 + Expected monthly return) 

Advantages of using the ELSS return calculator 

Following are some of the benefits of the ELSS return calculator: 

1. Quick calculations 

An ELSS return calculator is a valuable tool that can simplify calculating potential returns on ELSS funds. With just a few inputs, such as the investment amount, the tenure, and the expected rate of return, the calculator quickly provides accurate results. 

It eliminates the need for complex manual calculations and provides instant results, saving time and effort. 

2. No chance of an error 

Since the ELSS return calculator relies on computers to make calculations, it generates the expected returns and maturity amount with the utmost accuracy every time. 

3. Testing different scenarios 

With an ELSS return calculator, you can test out different scenarios involving varying levels of tenure and investment amount to choose the best combination for you at a given rate of return. 

What is an ELSS fund? 

An Equity Linked Savings Scheme (ELSS) is a mutual fund offering tax benefits under Section 80C of the Income Tax Act in India. ELSS funds predominantly allocate investments to equities, offering investors the opportunity for greater returns in contrast to conventional tax-saving choices. 
 
You can use tools like the ELSS Funds Returns Calculator and the ELSS Interest Rate Calculator to assess the ELSS fund's potential returns and benefits. 

How does an ELSS fund work? 

ELSS funds offer tax rebates on annual investments of up to ₹1.5 lakhs. You can get tax rebates of up to ₹46,800 in a year. ELSS funds will invest in equity and related securities and thus can be risky but also hold the possibility of high returns. 

What is the lock-in period for ELSS funds? 

In India, the lock-in period for ELSS (Equity-Linked Savings Scheme) funds is 3 years. Investors cannot redeem or sell their ELSS fund units during this period, assuring a longer-term commitment for possible profits and tax benefits. 

Are ELSS funds tax deductible? 

In India, ELSS (Equity-Linked Savings Scheme) money is tax deductible. Investments in ELSS funds are tax deductible under Section 80C of the Income Tax Act. Investors can deduct up to 1.5 lakhs from their taxable income, lowering their tax bill. Any investment that exceeds this limit will not be eligible for the tax rebate. 

Conclusion 

ELSS investment calculators are easy to use, convenient, and quick. You can check the ELSS investment returns and the maturity amount in simple steps. Similarly, you can instantly check the returns and maturity amount on a similar ELSS investment by changing the variable that does not match. It makes the ELSS calculator a handy tool to keep close when choosing ELSS schemes.