Post Office MIS calculator for monthly income

Post Office MIS Calculator India – Detailed Guide

Post Office Monthly Income Scheme (POMIS) is a popular government small savings scheme that provides guaranteed monthly interest to conservative investors. This calculator helps you estimate your monthly payout, total interest over the tenure, and the principal you will get back at maturity.

How Post Office MIS works

Under POMIS, you invest a lump sum amount for a fixed tenure (currently 5 years). The scheme pays a fixed interest rate every month, and your initial principal is returned at maturity. There is no compounding within the scheme itself.

• Interest is paid out monthly into your savings account.
• Principal remains unchanged and is returned at the end of the tenure.
• Premature closure is allowed after 1 year with a small penalty on the principal.
• There is no age restriction; any adult can invest subject to the maximum limit.

Investment limits and interest rate

POMIS has a maximum investment limit per account holder and per joint account. The interest rate is notified by the government and is typically revised every quarter.

• Maximum investment: usually ₹9 lakh for a single account and ₹15 lakh for a joint account (limits may change over time).
• Interest is a fixed percentage per annum, paid out every month.
• The calculator assumes a constant rate for simplicity so you can plan cash flows.

Tax treatment of POMIS interest

POMIS interest is fully taxable as per your income tax slab. There is usually no TDS deducted at source, but you must declare the interest in your income tax return under "Income from other sources".

• There is no Section 80C benefit on the investment amount.
• You can create a separate RD or SIP to reinvest the monthly interest if you do not need it immediately.
• For retirees, POMIS can be combined with SCSS to balance monthly and quarterly income.

Using this POMIS calculator for planning

The calculator takes your investment amount, interest rate, and tenure to compute your monthly income and total interest over the scheme period.

• Match the monthly interest against your essential expenses like rent, groceries, and medicine.
• Test different investment amounts within the maximum limit to see what monthly payout is comfortable.
• Plan how you will use the maturity principal at the end of 5 years (for example, reinvest or use for a major goal).