Post Office Monthly Income Scheme (MIS) Calculator
Find the monthly income from a Post Office Monthly Income Scheme deposit. POMIS pays interest every month over a 5-year term.
Current POMIS rate is 7.4% p.a., paid monthly. Limit is ₹9 lakh (single) / ₹15 lakh (joint); tenure 5 years.
What Is a Post Office MIS Calculator?
The Post Office Monthly Income Scheme (POMIS) is a Government of India small-savings scheme that gives investors a fixed, guaranteed income every month. It is offered through post offices across India and is especially popular with retirees, homemakers and anyone who wants a dependable monthly cash flow without market risk.
A Post Office MIS Calculator helps you estimate the monthly income you will earn on your deposit at the current rate of 7.4% per annum. The scheme runs for 5 years, pays interest monthly, and returns your full principal at maturity. Because the payout is fixed for the whole tenure, POMIS is an easy way to plan your household budget around a steady monthly amount.
POMIS Income Formula and How It Works
POMIS interest is paid out every month rather than compounded, so the monthly income is simply the annual interest split into twelve equal parts:
Monthly income = P × r ÷ 12
Where:
- P = amount deposited
- r = annual interest rate as a decimal (0.074)
Key scheme features:
- The tenure is 5 years.
- The maximum deposit is ₹9 lakh for a single account and ₹15 lakh for a joint account.
- Interest is paid monthly and is not compounded, since it is withdrawn as income.
- The full principal is returned at maturity.
Worked Example
Suppose you open a single POMIS account and deposit the maximum of ₹9,00,000 at the current rate of 7.4% per annum.
Annual interest = ₹9,00,000 × 0.074 = ₹66,600.
Monthly income = ₹66,600 ÷ 12 = ₹5,550. This amount is credited to your account every month for five years.
At the end of the tenure, your original ₹9 lakh principal is returned in full. Our Post Office MIS Calculator does this math instantly, so you can see exactly how much monthly income your deposit will generate before you invest.
Account Limits and Tax Treatment
A few points to keep in mind when planning a POMIS investment:
- Single account limit: Up to ₹9 lakh can be deposited in a single-holder account.
- Joint account limit: Up to ₹15 lakh can be deposited in a joint account held by up to three adults.
- Taxable interest: The monthly interest you earn is taxable as per your income tax slab. POMIS does not offer a Section 80C deduction.
- No TDS: POMIS does not deduct tax at source, but you must still report the interest in your return.
- Premature withdrawal: Allowed after one year with a small penalty on the deposit.
Always verify the latest notified rate on the official India Post website, since the POMIS rate is reviewed each quarter.
Frequently Asked Questions
The current Post Office Monthly Income Scheme interest rate is 7.4% per annum, paid monthly. The rate is set by the Government of India and reviewed every quarter, so check the latest notified rate before investing.
You can deposit up to ₹9 lakh in a single account and up to ₹15 lakh in a joint account held by up to three adults. The minimum deposit is ₹1,000, in multiples of ₹1,000.
The interest is paid out every month and can be credited directly to your post office savings account or a linked bank account. The amount is fixed for the entire 5-year tenure.
Yes. The monthly interest from POMIS is fully taxable as per your income tax slab. The scheme does not qualify for a Section 80C deduction, but no TDS is deducted at source.
The Post Office Monthly Income Scheme has a fixed tenure of 5 years. At the end of the term, the entire principal is returned to you, and you can reinvest it in a new POMIS account if you wish.
Premature withdrawal is allowed after one year. If you withdraw between one and three years, a penalty of 2% of the deposit applies; between three and five years the penalty is 1%. The balance principal is then returned to you.