PPF vs ELSS Tax Saving Calculator – India
₹1,50,000
Maximum ₹1.5 lakh for Section 80C deduction
15 years
PPF has 15-year lock-in. ELSS minimum 3 years
12%
Historical average: 12-15%. Higher risk, higher potential return
7.1%
Current PPF rate (Jan-Mar 2026). Government fixed.
PPF vs ELSS Comparison Results
ELSS (Equity Linked Savings Scheme) Higher Risk
Estimated Final Corpus
₹ 0
Total Tax (LTCG) Paid
₹ 0
Net Corpus (After Tax)
₹ 0
Effective Annualized Return
0%
PPF (Public Provident Fund) Lower Risk
Estimated Final Corpus
₹ 0
Total Tax Paid
₹ 0
Net Corpus (After Tax)
₹ 0
Effective Annualized Return
0%
Key Insight
ELSS offers higher potential returns but comes with market risk and LTCG tax. PPF offers guaranteed, tax-free returns with capital protection.
Immediate Tax Saving: Investing ₹1,50,000 can reduce your annual tax outgo by ₹30,000 if you are in the 20% tax slab.
FeatureELSSPPF
Lock-in Period3 years15 years
Risk LevelHigh (Market-linked)Low (Govt-backed)
Taxation on WithdrawalLTCG tax @ 12.5% on gains > ₹1.25L/yearTax-free (EEE status)
Maximum Investment (80C)No upper limit (but only ₹1.5L deduction)₹1.5 lakh per year
Best ForLong-term wealth creation with higher risk toleranceCapital safety & guaranteed returns
Important Disclaimer: This calculator provides estimates based on the inputs provided. ELSS returns are market-linked and not guaranteed. PPF interest rates are subject to change quarterly by the government. The LTCG tax calculation assumes gains exceed ₹1.25 lakh in the withdrawal year. Past performance of ELSS funds does not guarantee future returns. Consider your risk appetite, investment horizon, and financial goals before making investment decisions. Consult with a financial advisor for personalized advice.

PPF vs ELSS Calculator: The Smart Indian's Guide to Tax-Saving Investments

Choosing between PPF and ELSS for your Section 80C deductions is a classic financial dilemma for Indian investors. Both offer tax benefits up to ₹1.5 lakh annually, but their nature, risk, and returns differ significantly. Understanding which one aligns with your goals is key to building wealth while saving tax.

The Public Provident Fund (PPF) is your safe harbor. Backed by the Government of India, it offers guaranteed, tax-free returns (currently 7.1%). Your entire corpus at maturity is exempt from tax under its EEE (Exempt-Exempt-Exempt) status. The catch? A 15-year lock-in period and lower return potential compared to market-linked options. It's perfect for risk-averse investors saving for long-term goals like a child's education or a retirement supplement.

On the other side, Equity Linked Savings Schemes (ELSS) are market-linked mutual funds with the shortest 80C lock-in of just 3 years. They offer the potential for higher returns by investing in equities, but come with market risk. Gains are taxed at 12.5% (LTCG) only if they exceed ₹1.25 lakh in a financial year. ELSS suits younger investors with a longer time horizon and higher risk tolerance, aiming for wealth creation alongside tax saving.

So, which one wins? The answer isn't universal. If capital safety is your priority, lean towards PPF. If you seek higher growth and can tolerate market swings, ELSS has potential. Many savvy investors choose both, allocating to PPF for safety and ELSS for growth.

Use our PPF vs ELSS Calculator to run your own numbers. See how your annual investment could grow under each option based on your tenure, tax slab, and risk appetite. Make an informed choice that fits your unique financial journey.

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