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Post Office MIS Calculator

5-year monthly income scheme. Interest credited monthly to your SB account; principal returned at maturity.

Inputs
₹9.00 L

Max: ₹9L (single account)

Government-set, revised quarterly. Q3 FY24-25: 7.4%.

POMIS interest is fully taxable at your slab.

Monthly income
₹5,550
For 5 years, then principal returned
Principal (returned at maturity)₹9.00 L
Annual interest income₹66,600
Total interest over 5 years (gross)₹3.33 L
Tax on interest (30% slab)−₹99,900
Post-tax total over 5 years₹2.33 L
Effective monthly income (post-tax)₹3,885
POMIS quick facts: 5-year fixed tenure · monthly interest credited to linked SB account · principal returned at maturity · interest is fully taxable at your slab · premature exit allowed after 1 year with 2% penalty.
⚠ Purchasing-power warning: The monthly payout stays flat for 5 years while everything you buy gets more expensive. At 7% inflation, ₹5,550/mo today buys only ~₹3,957 worth of goods in year 5. POMIS is best for supplementary income, not as your primary retirement stream.
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The main NetCorpus India planner rolls this into a 50-year retirement plan alongside your loans, EPF, taxes, trips, and life goals.

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Simple estimate for post office mis. Rates & taxes will vary — verify before acting.

Post Office Monthly Income Scheme pays a fixed monthly interest payout on a lump-sum deposit over a 5-year term — designed for people who want predictable monthly cash flow rather than compounding growth.

How it's calculated

Interest is simple (not compounding) and paid out monthly rather than reinvested: monthly payout = deposit × annual rate ÷ 12. The principal is returned at the end of the 5-year term. Interest is fully taxable as income; there's no TDS deducted by the post office, but you're still liable to declare and pay tax on it.

Worked example

A ₹9L deposit (near the ₹9L single-account cap) at 7.4% p.a. pays about ₹5,550/month for 5 years, with the full ₹9L returned at maturity — useful as a supplementary income stream, not a growth vehicle.

Frequently asked
What's the maximum I can deposit in MIS?

₹9L for a single account, ₹15L for a joint account, as per current India Post rules — check the latest limits before depositing, since these are occasionally revised.

Is MIS interest reinvested or paid out?

Paid out monthly, directly to your linked savings account. It doesn't compound — if you want the interest to keep growing, you'd need to manually reinvest each payout elsewhere.

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