ELSS vs PPF Calculator — Which Tax Saver Gives Better Returns?
Compare ELSS mutual funds with PPF for Section 80C tax saving. See returns risk lock-in period and tax treatment side by side over 10 15 and 20 years.
Section 80C allows Rs 1.5 lakh deduction for tax saving investments but choosing between ELSS and PPF can be confusing. ELSS offers higher potential returns (12-15% CAGR) with only 3-year lock-in but with market risk. PPF gives guaranteed returns (7.1% currently) with 15-year lock-in and completely tax-free maturity. The right choice depends on your risk tolerance time horizon and existing investments.
Calculate Now
Key Information
| Parameter | Details |
|---|---|
| ELSS Historical Returns | 12% - 15% CAGR (10-year average) |
| PPF Interest Rate | 7.1% per annum (2026) |
| ELSS Lock-In Period | 3 years |
| PPF Lock-In Period | 15 years (extendable in 5-year blocks) |
Compare ELSS and PPF returns
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
ELSS vs PPF returns over 20 years?
Investing Rs 1.5 lakh annually: PPF at 7.1% for 20 years grows to approximately Rs 66 lakh. ELSS at 12% for 20 years grows to approximately Rs 1.21 crore and at 15% to Rs 1.72 crore. Even at a conservative 10% ELSS gives Rs 95 lakh beating PPF by Rs 29 lakh. However PPF returns are guaranteed while ELSS returns depend on market performance and fund selection.
Can I invest in both ELSS and PPF?
Yes and this is often the best strategy. The Rs 1.5 lakh 80C limit can be split between both. Conservative approach: Rs 1 lakh PPF + Rs 50000 ELSS. Balanced: Rs 75000 each. Aggressive: Rs 50000 PPF + Rs 1 lakh ELSS. PPF provides guaranteed returns and stability while ELSS adds growth potential. Your EPF contribution also counts toward 80C reducing the remaining amount for PPF and ELSS.
Is ELSS risky for tax saving?
ELSS invests in equity markets so short-term volatility exists. However with the mandatory 3-year lock-in historical data shows very few instances of negative returns over 3-year periods. Over 5+ years ELSS has consistently beaten fixed income options. For tax saving purposes ELSS offers the shortest lock-in period of any 80C investment making it the most liquid option after 3 years.
Related Calculators
Last updated: 24 March 2026