How to Use the Post Office MIS Calculator
Choose single or joint account (the deposit caps differ), enter your deposit and the current MIS rate. The calculator shows the exact monthly payout, the annual income, total interest over the 5-year term, and the principal you get back at maturity.
Post Office MIS Calculator Formula
Monthly payout = P × r ÷ 12 (simple interest; principal returned after 5 years)P= Deposit (max ₹9L single, ₹15L joint)r= Annual rate locked at opening (7.4% currently)
Example Calculation
A single account with the maximum ₹9,00,000 at 7.4%:
Monthly payout = 9,00,000 × 7.4% ÷ 12 = ₹5,550
₹5,550 every month for 5 years, then ₹9,00,000 back
A salary from your savings
The Post Office Monthly Income Scheme does exactly what its name says: you deposit once and receive a fixed credit every month for five years, with the deposit returned intact at the end. It is the simplest monthly-income instrument in India — no market risk, no NAVs, no rate resets mid-term — which is why it remains a fixture of conservative household planning, especially where a predictable supplement to a pension is the goal.
Its constraint is the cap: ₹9 lakh per person (₹15 lakh joint) limits the maximum income to a few thousand rupees a month. MIS is therefore a component of an income plan, not the whole plan — typically layered with SCSS (for those 60+) and FD interest.
Three ways households actually use MIS
- Pension supplement: a maxed joint account paying ₹9,250/month covers a utility-and-groceries slice of a retired couple’s budget with zero volatility.
- Income for a non-earning family member: an MIS in a homemaker’s name creates taxable income in a lower (often zero) slab — legitimate and efficient.
- MIS + RD combo: sweep the monthly payout into a 5-year RD and the "income scheme" quietly becomes a compounding scheme, ending with both principals intact.
MIS vs SCSS vs FD for monthly income
For anyone 60+, SCSS beats MIS on rate (8.2% vs 7.4%) and cap (₹30L vs ₹9L) — fill SCSS first. Below 60, MIS competes with monthly-payout bank FDs: MIS usually wins on rate versus large banks and always on sovereign safety, while FDs win on flexibility and higher caps. The honest comparison needs your bank’s actual FD rate — check the FD calculator with the monthly-payout figure your bank quotes, and remember both are slab-taxed.
Frequently Asked Questions
What is the maximum monthly income from PO MIS?
At 7.4%, a maxed single account (₹9 lakh) pays ₹5,550/month; a maxed joint account (₹15 lakh) pays ₹9,250/month. A couple can also each hold a single account alongside a joint one, within the per-person aggregate cap of ₹9L (single share counted).
Is the MIS payout taxable?
Yes — fully taxable at your slab as "income from other sources". There is no TDS on MIS, so declare it in your ITR yourself. The deposit gets no 80C benefit.
What happens if I withdraw early?
No withdrawal in year 1. Between 1–3 years, closure costs a 2% deduction from the deposit; between 3–5 years, 1%. Interest already paid is yours to keep.
What happens at maturity?
You get the principal back. Many retirees roll it into a fresh MIS at the then-current rate, or step up to SCSS if they have crossed 60 in the meantime — SCSS pays more.
Can the monthly interest be reinvested automatically?
Yes — a standing instruction can sweep the monthly payout into a Post Office RD, effectively converting MIS into a compounding product. The RD calculator shows what that stream builds to.
Assumptions & Methodology
- Interest is simple, paid monthly from the deposit date; payouts are not reinvested.
- The rate at account opening is locked for the full 5-year term.
- Slab tax on the interest is not deducted from the displayed payout; there is no TDS on MIS.
Sources
All calculations run in your browser and are provided for information only — they are not investment, tax or legal advice. Verify current rates and rules with the official source above before acting.