Worked example
Example with the default numbers — change them above.
Amount you invest: ₹4,50,000 · Account type: Single (up to ₹9 L)
Investing ₹4.5 L in the Post Office Monthly Income Scheme at 7.4% pays ₹2,775 every month for 5 years, and your money comes back at the end.
| Monthly income | ₹2,775 · ₹33,300 a year |
|---|---|
| Total interest in 5 years | ₹1.67 L · 60 monthly payments |
| Amount you invest | ₹4.5 L · Single account |
| Money back at maturity | ₹4.5 L · Your original amount |
How the Post Office MIS Calculator works
- Enter the amount to invest, in multiples of ₹1,000, and choose a single or joint account.
- The calculator applies the limit: ₹9,00,000 for a single account and ₹15,00,000 for a joint account. If you enter more, it uses the limit and tells you.
- Every month you receive one twelfth of the yearly interest: amount × yearly rate ÷ 12.
- This continues for 60 months. The interest is paid out, so it is not added to the balance and does not compound.
- At maturity you get your original amount back. The table shows the interest paid out each year.
POMIS monthly income
Monthly income = P × r ÷ 12
Total interest = monthly income × 60 payments
P = amount invested (up to the limit), r = yearly rate as a decimal
Principal is returned in full at maturityAssumptions and limits
- The rate used applies for the full 5 years. As per the scheme rules, the rate in force when you open the account is the one that stays.
- The investment is capped at ₹9,00,000 for a single account and ₹15,00,000 for a joint account. Amounts above the cap are ignored.
- Interest is simple, paid out every month, and assumed to be spent or kept outside the scheme. The calculator does not reinvest it. The first payment comes a month after you open the account, each payment is rounded to the rupee in practice, and interest you do not collect earns nothing more.
- The joint limit of ₹15,00,000 assumes each holder's share (half with two holders, a third with three), together with any other MIS they hold, stays within ₹9,00,000 per person.
- The calculation does not deduct tax. POMIS interest is taxable, and the investment does not qualify for a Section 80C (now section 123 of the Income-tax Act, 2025) deduction. Check current rules for your situation.
- Closing early is not modelled. It is allowed only after one year; closing on or before 3 years costs 2% of the deposit, and after 3 years 1%.
Frequently asked questions
How much monthly income will I get from Post Office MIS?
Monthly income is the amount invested times the yearly rate, divided by 12. At 7.4%, an investment of ₹4,50,000 pays ₹2,775 a month. The calculator above does this for your amount, up to the limit for your account type, and shows the total interest over the five years.
What is the current Post Office MIS interest rate?
The Post Office MIS rate is 7.4% a year for Q3 FY2026-27, effective 1 October 2026. The Finance Ministry reviews small-savings rates every quarter, so the next change could come around 1 January 2027. The rate on the day you open the account is the one you keep for the full five years. We last checked this rate on 21 October 2026; confirm with India Post or your bank before you invest.
What is the maximum investment in Post Office MIS?
The limit is ₹9,00,000 for a single account and ₹15,00,000 for a joint account, which can have up to three adults. The minimum is ₹1,000 in multiples of ₹1,000. In a joint account, each holder's share counts toward their own limit, so check how it applies to you.
Is Post Office MIS interest taxable?
Yes. The monthly interest is added to your income and taxed at your slab rate, even though it is paid into your savings account rather than reinvested. The investment does not qualify for a deduction under Section 80C (now section 123 of the Income-tax Act, 2025). Tax rules change with each Budget, so confirm the latest position or ask a tax professional.
Can I close Post Office MIS before 5 years?
Only after one year. If you close on or before three years, 2% of the deposit is deducted; after three years, 1% is deducted. Nothing can be withdrawn in the first year. Check the current rules with the post office before depending on early access.
Post Office MIS or SCSS: which is better for monthly income?
Compare rate, limit and eligibility. At present POMIS pays 7.4% monthly, while SCSS pays 8.2% quarterly but is only for senior citizens and also has a Section 80C (now section 123) benefit under the old regime. Use both calculators with the same amount to compare.
Sources
- National Savings Institute (Ministry of Finance): Monthly Income Account scheme details
- India Post: current interest rates on post office savings schemes
Logic and rates last verified on .
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