Finance & Banking CalcyZone Calculator

Post Office MIS Calculator (Monthly Income Scheme)

Calculate the monthly income from the Post Office Monthly Income Scheme (POMIS) for any deposit.

Monthly income

₹5,550.00

Total interest in 5 years

₹3,33,000

Principal returned at maturity

₹9,00,000

Step-by-step working

9,00,000 × 7.4 / 1200 = ₹5,550 per month

Mathematical Formula

Monthly income = P × r / 1200 (simple interest paid every month for 5 years; principal returned at maturity).

Overview & Explanation

POMIS pays simple interest every month for 5 years and returns the principal at maturity.

How It Works

Yearly interest = P × r / 100.
Divide by 12 for the monthly payout.

Practical Applications

Regular income for retirees.
Parking a lumpsum safely.

How the Monthly Income Scheme pays

The Post Office Monthly Income Scheme (POMIS) takes a one-time deposit for five years and pays interest every month. Monthly income = deposit × annual rate ÷ 12. At 7.4% a year, a ₹9,00,000 deposit pays 9,00,000 × 0.074 ÷ 12 = ₹5,550 a month, or ₹66,600 a year. The full deposit is returned at maturity.

Because interest is paid out rather than compounded, the total income over five years is simply 60 monthly payments: ₹3,33,000 in this example. If you reinvest each payment, for example into a recurring deposit, your effective return rises.

Limits and rules

The maximum is ₹9 lakh in a single account and ₹15 lakh in a joint account, with a minimum of ₹1,000. Rates are set by the government each quarter, and the rate at opening applies for the full term. Closing the account after one year but before three years deducts 2% of the deposit; between three and five years the deduction is 1%. Interest is taxable and the deposit does not qualify for Section 80C.