Post Office MIS Calculator
Compute the monthly income and total return from a Post Office Monthly Income Scheme deposit.
- Principal returned
- ₹9.00L
- Total interest
- ₹3.33L
Interest is paid out monthly (not compounded); the principal is returned at the fixed 5-year maturity. The deposit is capped at the ₹9 lakh single-account statutory limit. The scheme's official rate is revised quarterly by the government — verify before relying on this.
Independent · No commissions · No fund-house data — how the numbers are computed
How it works
The Post Office Monthly Income Scheme (POMIS) is a small-savings deposit that pays interest out every month instead of compounding it. You deposit up to ₹9 lakh in a single account (₹15 lakh in a joint account), receive a fixed monthly payout for the scheme's fixed 5-year term, and get the full principal back at maturity.
This calculator computes the monthly payout and the total interest over the term. It defaults to 7.4% a year — the notified POMIS rate as of the Apr–Jun 2026 quarter, revised quarterly by the government and editable here. The rate in force when you open the account is locked for your deposit's full five years.
Because interest is paid out monthly, there is no compounding: the payout is simply the deposit times the annual rate, divided by twelve. A ₹9 lakh deposit at 7.4% pays ₹5,550 a month. What you do with that payout — spend it or reinvest it elsewhere — determines the real return.
Monthly payout = P × r / 12P is the deposit and r the annual rate as a decimal. Interest is paid out monthly rather than compounded, so total interest over the term is P × r × 5, and the principal P is returned at the 5-year maturity.
Frequently asked questions
What is the maximum investment in Post Office MIS?
₹9 lakh in a single account — the cap this calculator enforces — and ₹15 lakh in a joint account, where all holders share equally in the investment. The minimum is ₹1,000. An individual's share across all their MIS accounts, single and joint combined, cannot exceed the ₹9 lakh individual ceiling.
Is Post Office MIS interest taxable?
Yes. The monthly interest is fully taxable at your slab rate as income from other sources, and unlike bank deposits, the deposit earns no Section 80C benefit. No TDS is deducted at source on POMIS interest, so the tax liability must be discharged through advance tax or at return filing. The principal returned at maturity is not income.
What is the current Post Office MIS interest rate?
The POMIS rate is notified quarterly by the government; as of the Apr–Jun 2026 quarter it was 7.4% per year, paid out monthly — the default this calculator uses, editable via the slider. The rate applicable when you open the account remains fixed for the entire 5-year term regardless of later quarterly revisions.
Can Post Office MIS be closed before 5 years?
Not in the first year at all. From one to three years, premature closure deducts 2% of the deposit as penalty; from three to five years, 1%. The monthly payouts already received are kept. At the 5-year maturity there is no extension option — the account closes and the principal is returned, though it can be reinvested in a fresh MIS account at the then-current rate.
What happens if I leave the monthly payout in the post office account?
Nothing good — MIS interest left unclaimed earns no further interest. The standard practice is to have the payout auto-credited to a post-office savings account (which earns the savings rate) or, for a compounding effect, to stand-instruct it into a post-office recurring deposit. The scheme itself never compounds; any reinvestment is a separate product you choose.
Go further
The higher-rate quarterly-payout scheme if you are 60 or older.
The classic pairing: sweep the monthly MIS payout into a recurring deposit.
The mutual-fund route to a monthly income from a lump sum.
How a systematic withdrawal compares with a fixed-payout scheme.