ANALYSIS
ELSS vs PPF calculator
Same 80C deduction either way · Compares what you actually keep after tax at exit
LEARN: CAGR · LTCG calculator
How it works
Both ELSS and PPF get you the same ₹1.5 lakh/year Section 80C deduction - the comparison that matters is what the money grows to, and what's left after tax when you take it out. Enter the same annual amount for both; PPF compounds annually at its government-set rate and comes out fully tax-free, while ELSS compounds at your assumed equity return and is taxed at 12.5% on gains above the shared ₹1.25 lakh LTCG exemption when you exit.
ELSS: 3-year lock-in per installment, market-linked, taxed at exit · PPF: 15-year lock-in, govt-guaranteed, fully tax-free · Not investment advice
Frequently asked questions
Which is better for tax saving - ELSS or PPF?
Both qualify for the same ₹1.5 lakh/year deduction under Section 80C, so the tax saving at the time you invest is identical either way. The difference is what happens after: PPF is fully tax-free at maturity (EEE - exempt, exempt, exempt) with a guaranteed, government-set rate; ELSS gains are market-linked and taxed at exit under equity LTCG rules (12.5% above a shared ₹1.25 lakh annual exemption), but have historically grown faster than PPF over long holding periods. Which is "better" depends on your risk appetite and time horizon, not a fixed answer.
What is the lock-in period for ELSS vs PPF?
ELSS has the shortest lock-in of any 80C option - just 3 years from each investment date (each SIP installment locks in separately). PPF locks in for 15 years, with partial withdrawals allowed from year 7 and the option to extend in 5-year blocks at maturity. If you might need the money within 15 years, that liquidity gap matters as much as the return difference.
Is the PPF rate fixed for the full investment period?
No - the PPF rate is set by the government every quarter (7.1% for Oct-Dec 2026) and can change, though it has been stable for the last 10 quarters. This calculator uses a single rate you enter as a simplifying assumption for the whole horizon; your actual PPF return will vary slightly with each quarter's real notified rate.