Run a conservative scenario before relying on the headline result.
Post Office Monthly Income Scheme Calculator
Estimate predictable monthly income from a Post Office MIS deposit. Adjust the assumptions, inspect the chart and read the complete guide below.
02 Your projection
Monthly income₹5,550Updates instantly as you edit
Total invested / base₹9.00 L
Growth / cost₹3.33 L
Total interest₹3.33 L
Projection journeyHover to inspect a year
Payouts are shown without reinvestment or tax deduction.
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Five smart nudges
Use the result with context.
Review the assumptions after any major change in income, rates or goals.
Keep emergency money separate from long-term investments.
Account for taxes, charges and inflation when comparing options.
Use this estimate to ask better questions, not as a return promise.
Understanding POMIS in India
Editorially reviewed 12 July 2026 · Rules and assumptions can change
How Post Office MIS produces monthly income
Post Office Monthly Income Scheme converts an eligible lump sum into a monthly interest credit over its five-year term. The principal is returned at maturity and monthly interest does not compound within MIS. The calculator divides annual interest by twelve to show gross monthly cash flow. If a sales illustration adds monthly interest back to principal at the MIS rate, it is modelling an external reinvestment that the account does not perform.
The rate for a deposit follows the applicable issue terms. Account type, individual and joint limits and aggregate holdings must be checked before using the maximum shown in a calculator.
Worked MIS example and cash-flow use
At 7.4%, a ₹9 lakh individual deposit produces ₹66,600 a year, or about ₹5,550 per month before tax. A ₹15 lakh eligible joint deposit produces about ₹9,250 a month. At maturity the original principal is returned; it does not become principal plus five years of interest unless the household saved and reinvested each monthly payout elsewhere.
MIS works best when the monthly receipt maps to a recurring expense. If the goal is corpus growth rather than income, a cumulative product may be more appropriate because spending or leaving monthly interest idle creates reinvestment drag.
Tax and nomination considerations
MIS interest is generally taxable at the investor’s applicable rate. The calculator’s monthly income is gross, so compare it after estimated tax. The absence or presence of TDS does not decide whether income is taxable; the investor must include it as required for the relevant year.
Joint operation affects account administration, but tax attribution follows ownership and tax rules rather than a simple assumption that income is always split equally. Maintain contribution records, nomination and the designated credit account, especially when elderly family members depend on the payout.
Premature closure and the five-year clock
India Post states that MIS can be closed after one year subject to prescribed deductions. Closing early can therefore reduce the effective return and disrupt the income plan. The calculator assumes the deposit stays for the selected five-year term and cannot price an early-closure decision.
Keep near-term emergency expenses outside MIS. If monthly income is used for essential bills, maintain a separate reserve for delays, account servicing issues or the transition after maturity.
MIS versus SCSS and payout FD
MIS pays monthly and has broader eligibility; SCSS pays quarterly, has age or retirement eligibility and may offer a different rate and ceiling. A bank payout FD can offer flexible tenures but carries bank credit and deposit-insurance considerations. None should be compared by rate alone.
Use the same principal and tax rate to compare net monthly cash flow, maturity date, early-closure cost and operational convenience. For a retiree, the best structure may split money across maturities rather than concentrating everything in one five-year product.
MIS decision checklist
Confirm the allowed deposit across all individual and joint accounts, monthly credit instructions, nominee, source of funds, maturity date and likely tax rate. Decide where each monthly payment goes; an unplanned payout often gets consumed without supporting the intended goal.
Review the plan at least six months before maturity. The next available rate may differ, so avoid assuming the same income continues automatically after year five.
Official sources used for this guide
- Department of Economic Affairs — current small-savings rates ↗
- India Post — Post Office savings schemes and closure rules ↗
Rates, thresholds and rules can change after the review date. Check the linked authority and the provider’s current documents before acting.
POMIS calculator FAQs
Does Post Office MIS compound monthly?
No. Interest is paid monthly. Any compounding depends on where the investor separately reinvests that payout.
What monthly income does ₹9 lakh earn at 7.4%?
The gross estimate is ₹5,550 a month before tax, subject to official product terms.
Is MIS interest tax-free?
No. Interest is generally taxable according to the investor’s circumstances.
Can MIS be closed before five years?
Closure is available after the prescribed minimum period and deductions can apply. Verify the current rule before acting.
What happens at maturity?
The principal is returned. Monthly interest already paid is not added again to maturity proceeds.