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Post Office MIS Calculator

Calculate your monthly income from Post Office Monthly Income Scheme (POMIS) — free, instant, no signup required.

POMIS Income Calculator

POMIS has a fixed 5-year tenure. Interest is paid out monthly; the principal is returned at maturity.

Monthly Income
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Total Interest Earned
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Maturity Value (Principal)
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What is Post Office Monthly Income Scheme (POMIS)?

Post Office Monthly Income Scheme (POMIS or MIS) is a government-backed savings scheme offered through post offices across India. As the name suggests, it provides investors with a regular fixed monthly income for a tenure of 5 years. The principal (invested amount) is returned at the end of the tenure, making it a capital-safe income-generating instrument.

POMIS is ideal for retirees, senior citizens, and conservative investors who require a steady monthly income without risking their principal. Unlike FDs that typically pay interest quarterly, POMIS is unique in providing monthly payouts — making it useful for covering regular expenses like rent, utility bills, or EMIs.

POMIS Calculation Formula

POMIS does not compound interest. The monthly interest is calculated as a simple fraction of the annual rate:

Monthly Income = P × r / 1200

Total Interest = Monthly Income × 60 (5 years × 12 months)

Maturity Value = P (principal returned at end of 5 years)

Where:
  P = Investment Amount (₹)
  r = Annual Interest Rate (%)
  1200 = 12 months × 100

For example, if you invest ₹5,00,000 at 7.4% p.a.: Monthly Income = 5,00,000 × 7.4 / 1200 = ₹3,083 per month. Over 5 years (60 months), total interest = ₹1,85,000. At maturity, you get back your ₹5,00,000 principal.

Investment Limits

  • Minimum investment: ₹1,000 (in multiples of ₹1,000).
  • Maximum investment — Single account: ₹9,00,000 per individual.
  • Maximum investment — Joint account: ₹15,00,000 (with up to 3 joint holders).
  • Multiple accounts: You can open multiple MIS accounts, but the total investment across all accounts (individually and as a joint holder) cannot exceed the specified limits.

Current POMIS Interest Rate

The current Post Office MIS interest rate is 7.4% per annum (as of 2024), paid out monthly. This rate is set by the Government of India and revised quarterly. You can verify the current rate at any post office or on the India Post website before investing.

Tax Implications of POMIS

  • No Section 80C benefit: Unlike PPF, NSC, or ELSS, POMIS investment does not qualify for any tax deduction. The principal invested is not deductible from taxable income.
  • Interest is taxable: The monthly interest payouts are fully taxable as "Income from Other Sources" in the year they are received. You must declare this income in your ITR.
  • No TDS on MIS: Post Office MIS does not deduct TDS. However, if the total interest income from all sources exceeds the basic exemption limit, you are responsible for paying advance tax or self-assessment tax.
  • Principal return: The principal received at maturity is not taxable as it is a return of your own capital.

Premature Withdrawal Rules

  • No premature withdrawal is allowed within the first year of opening the account.
  • After 1 year but before 3 years: 2% of the principal is deducted as penalty before returning the balance.
  • After 3 years but before 5 years: 1% of the principal is deducted as penalty.
  • In case of the account holder's death, the nominee can close the account and receive the full principal along with accrued interest proportionate to the period held.

Advantages of POMIS

  • Guaranteed monthly income: Provides predictable, stable monthly cash flow — ideal for retirees relying on regular income.
  • Government-backed safety: Principal is fully guaranteed by the Government of India — zero credit risk.
  • Capital preservation: Unlike equity or mutual fund investments, the principal invested is returned intact at maturity.
  • Competitive rate: At 7.4% p.a., POMIS often outperforms bank savings accounts and competes with short-term FDs.
  • Nationwide accessibility: Available at all 1.5+ lakh post offices across India, including rural areas with limited banking access.
  • Joint account option: Allows investment up to ₹15 lakh jointly, enabling families to maximise income generation together.

Frequently Asked Questions

The maximum investment in a Post Office MIS single account is ₹9,00,000 per individual. For joint accounts (with up to 3 joint holders), the maximum is ₹15,00,000. Each joint holder's share is considered equal, and the individual limit of ₹9 lakh still applies per person across all their accounts. You can hold multiple MIS accounts, but the combined balance across all your individual and joint accounts (your share) must not exceed ₹9 lakh.
Yes, the monthly interest received from POMIS is fully taxable. It must be declared as "Income from Other Sources" in your Income Tax Return for each financial year. However, there is no TDS (Tax Deducted at Source) on Post Office MIS payouts — you are responsible for computing and paying tax on this income yourself. The investment in POMIS does not qualify for any Section 80C deduction. The principal amount received at maturity is not taxable as it is simply a return of your own capital.
Premature withdrawal from POMIS is allowed but with penalties. No withdrawal is permitted in the first year. From 1 to 3 years: a 2% deduction is made from the principal. From 3 to 5 years: a 1% deduction is made from the principal. In the event of the account holder's death, the nominee or legal heir can close the account at any time without any penalty, and receive the principal along with proportionate interest for the completed months.
Both POMIS and bank Fixed Deposits (FDs) offer guaranteed returns, but they differ in key ways. POMIS pays interest monthly (ideal for regular income), while most FDs pay quarterly or at maturity. POMIS is backed by the Government of India (no bank default risk), while FDs are backed only up to ₹5 lakh per depositor under DICGC insurance. POMIS investment does not qualify for Section 80C deduction, while 5-year tax-saver FDs do. The interest rate on POMIS may differ from current FD rates — compare both before choosing. POMIS premature withdrawal carries a penalty; FD penalties also apply but are typically smaller.