Post Office MIS Calculator — Monthly Income Scheme

What the Post Office Monthly Income Scheme Actually Does

The MIS post office scheme is the one small savings product built to pay you rather than to accumulate. You place a single lump sum, and from the month after opening, India Post credits interest to your Post Office savings account every month for five years. At the end of the term the principal comes back to you whole — untouched, because it was never eaten into.

That structure is the entire point, and it is also the thing most people get wrong. Nothing compounds. The monthly income leaves the scheme, so it earns nothing further inside it. A POMIS deposit and a Post Office Time Deposit of the same size at the same rate do not return the same amount over five years — the TD returns more, because its interest stays in and compounds quarterly. POMIS trades that growth away for a predictable monthly cheque, which is exactly what a retiree funding household expenses wants and exactly what a saver building a corpus does not.

How This Post Office Monthly Income Scheme Calculator Works

The arithmetic is deliberately simple, because the scheme is. Annual interest is the deposit multiplied by the notified rate; the monthly income is that figure divided by twelve. There is no compounding term because there is nothing left inside to compound. Enter your deposit and the rate applicable to your opening quarter, and the POMIS calculator above returns the monthly credit, the annual total, and the five-year sum — alongside the principal, which is returned separately at maturity.

Post Office MIS Calculator Formula & Calculation

There is only one expression behind this pomis calculator, and it is worth seeing plainly rather than taking on trust:

Work an example through by hand. Take ₹1,50,000 at an illustrative 7.4%. Annual interest is ₹1,50,000 × 7.4 ÷ 100 = ₹11,100. Divide by twelve and the monthly credit is ₹925. Over the full sixty months that is ₹55,500of interest, and your ₹1,50,000 comes back separately and intact at maturity — a total benefit of ₹2,05,500. Every figure the post office mis calculator above produces comes from exactly that arithmetic, which is why the year-by-year table reconciles to the rupee rather than drifting.

Notice what the formula does not contain: any compounding term. There is no exponent, no quarterly rest, no (1 + r)ⁿ. That absence is the scheme, not a simplification. Because the interest is disbursed to you every month it never remains inside the account to earn on itself, so a po interest calculator for MIS is doing simple interest and nothing more. This is the reason a POMIS deposit and a Post Office Time Deposit of identical size and rate do not mature to the same figure — and it is also why the monthly income stays flat for all five years rather than climbing.

One rounding note, since people do check this by hand. The post office pays a whole rupee, so a deposit of ₹1,000 at 7.4% produces ₹6.17 a month and is shown as ₹6. Multiply that displayed ₹6 by sixty and you get ₹360, while the true five-year interest is ₹370. The calculator reports the exact total rather than the rounded monthly figure multiplied out, which is the same convention every mainstream mis scheme calculator uses — and the same one you should expect from any post office scheme calculator you check this against.

How the MIS Interest Rate Is Set

The MIS interest rate is not a commercial decision. Post Office small savings rates are benchmarked against yields on Government Securities of comparable maturity and reviewed quarterly by the Ministry of Finance, then notified nationally. Two consequences follow, and both matter.

First, the rate is identical at every post office in the country — there is no shopping around between branches the way there is between banks. Second, the rate applicable to your account is the one notified for the quarter in which you open it, and it is then fixed for the full five years. A later revision, up or down, does not touch a running account. Take the current notified figure from India Post before relying on any projection.

This quarterly mechanism is why searches carry years attached to them — a post office mis interest rate 2022 calculator, a post office mis calculator 2023, a mis calculator post office 2023 and a post office monthly income scheme calculator 2023 were all, at the time, people trying to pin down which notification applied to them. Through 2022 the MIS rate sat at 6.6% for several consecutive quarters before the revision cycle moved it upward across 2023 as G-Sec yields rose. Anyone who opened an account in one of those quarters is still earning that quarter's rate today, fixed until their five years are up, which is precisely why a year-stamped figure is not a number you should carry into a new deposit. Rather than hard-code any rate, this tool leaves it as an input: put in the notified rate for your own opening quarter and the projection rebuilds around it.

POMIS Investment Limits: ₹9 Lakh Single, ₹15 Lakh Joint

POMIS is capped by statute, which is unusual among deposit products and is the constraint that shapes most planning around it. A single account holds a maximum of ₹9 lakh; a joint account, held by up to three adults, holds ₹15 lakh. The minimum is ₹1,000, in multiples of ₹1,000 thereafter.

The ceiling applies to you as a depositor across all POMIS accounts, not per account, so opening several does not multiply the limit. In a joint account each holder is treated as having an equal share for the purpose of that ceiling. What this means in practice is that POMIS alone cannot carry a large retirement corpus — it is a component, usually paired with SCSS and a bank deposit rather than used on its own.

Note what the last column is not: it is the interest paid out over five years, not a maturity value. Your ₹9 lakh or ₹15 lakh is returned on top of it, in full.

POMIS vs Post Office Time Deposit vs Recurring Deposit

India Post runs three deposit products that get confused with one another constantly. The difference is not the interest rate — it is which direction the money moves.

If you want the money to grow rather than arrive, the Post Office Time Deposit calculator is the right tool. If you are saving monthly rather than depositing a lump sum, use the Post Office RD calculator.

People reaching for a post office fixed deposit monthly income scheme calculator, or a post office fd calculator 2023, are usually trying to resolve this exact confusion: India Post does not run a "fixed deposit that pays monthly" as a single product. There is a Time Deposit, which compounds quarterly and settles at maturity, and there is MIS, which pays monthly and compounds nothing. Same issuer, opposite cashflow. Deciding between them is really deciding whether you need the income now or the growth later — the rate is almost beside the point.

There is a way to have some of both, and it is the most useful thing on this page for anyone who does not actually need the monthly cheque. Because the MIS income lands in your Post Office savings account, it can be swept straight into a five-year Recurring Deposit, restoring the quarterly compounding that MIS gives up. Someone who has modelled a post office RD 2000 per month 5 years plan has already seen what that does to a corpus. In effect the pairing turns a flat monthly income back into a growing balance, and it costs nothing but the paperwork to set up at the counter.

A last comparison worth drawing, because the products are not equivalent. Queries for an sbi monthly income scheme calculator 2021, or the sbi monthly income scheme interest rate 2020, are generally about bank annuity deposits and monthly-income FDs. Those are commercial products: each bank prices its own, the rate varies between them and moves with the bank's cost of funds, and your money is protected by DICGC insurance up to ₹5,00,000 per depositor per bank. POMIS is a sovereign small savings scheme with a single nationally notified rate and government backing rather than an insurance cap. Comparing the headline percentages side by side without that context compares two genuinely different things.

Premature Closure, Tax and Practical Rules

A POMIS account cannot be closed within the first year at all. Closing between one and three years costs a 2% deduction from the principal; between three and five years, 1%. Note that this is a deduction from your capital, not merely a forfeit of interest — which makes POMIS a poor place for money you might need back early.

On tax, two points are commonly confused. The monthly interest is fully taxableat your slab rate under "Income from Other Sources", and POMIS carries no Section 80C benefit on the amount deposited. But the post office does not deduct TDS on MIS interest — which is a payment convenience, not an exemption. The income remains fully reportable, and you must declare it when you file. Senior citizens can set POMIS interest against the Section 80TTB deduction of up to ₹50,000 on deposit interest, available under the old tax regime.

A few practical rules worth knowing: the account can be opened by any resident Indian adult, or by a guardian for a minor; it can be transferred between post offices anywhere in India at no cost; and the monthly income can be set to credit automatically into a linked Post Office savings account or swept into an RD, which is how depositors who do not need the income immediately recover some of the compounding POMIS gives up.