Post Office MIS Calculator – Monthly Income Scheme (POMIS)
Calculate your fixed monthly income from the Post Office Monthly Income Scheme. Enter your investment amount and see the monthly payout, total interest earned, and maturity value with a full step-by-step breakdown.
📘 Step-by-step calculation
1. Investment Amount (P) = ₹9,00,000, Annual Interest Rate (r) = 7.4%, Tenure = 5 years.
2. MIS pays simple interest monthly on the lump sum. It does not compound, because the interest is paid out to you each month.
3. Annual Interest = P × r = ₹9,00,000 × 7.4% = ₹66,600.
4. Monthly Income = Annual Interest ÷ 12 = ₹66,600 ÷ 12 = ₹5,550.
5. Total Interest over 5 years = ₹5,550 × 60 months = ₹3,33,000. Maturity Value = Original Principal = ₹9,00,000.
What is the Post Office Monthly Income Scheme (MIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme offered through India Post. You invest a lump sum amount for a fixed tenure of 5 years, and the scheme pays you a fixed monthly interest. At maturity, your original principal is returned in full [citation:1][citation:3].
MIS is designed for conservative investors—especially retirees and those seeking regular income—who want predictable cash flow without market risk. The interest rate is notified quarterly by the Government of India and remains fixed for your entire 5-year tenure at the rate applicable on your account opening date [citation:3][citation:5].
Post Office MIS Calculation Formula
MIS uses simple interest paid out monthly. There is no compounding because the interest is disbursed to you each month rather than added to the principal.
Where:
- Investment Amount = Your lump sum deposit (₹1,000 to ₹9 lakh for single, up to ₹15 lakh for joint)
- Annual Interest Rate = Current MIS rate (e.g., 7.4% = 0.074 as a decimal)
- 12 = Number of months in a year
Total Interest over 5 Years = Monthly Income × 60 months.
Maturity Value = Original Investment Amount (principal is returned in full).
Example Calculation (Post Office MIS)
Example: You invest ₹9,00,000 in a single-holder Post Office MIS account at 7.4% per annum for 5 years.
- Step 1: Investment (P) = ₹9,00,000, Rate (r) = 7.4% = 0.074, Tenure = 5 years (60 months).
- Step 2: Annual Interest = ₹9,00,000 × 0.074 = ₹66,600.
- Step 3: Monthly Income = ₹66,600 ÷ 12 = ₹5,550.
- Step 4: Total Interest over 5 years = ₹5,550 × 60 = ₹3,33,000.
- Step 5: Maturity Value (Principal Returned) = ₹9,00,000.
For a joint account with ₹15,00,000 at 7.4%: Monthly Income = (15,00,000 × 0.074) ÷ 12 = ₹9,250 per month [citation:2][citation:3].