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A Post Office MIS calculator turns a lump-sum deposit into a predictable monthly income figure in seconds. Enter your investment amount, and the tool applies the current interest rate to show exactly what you will receive every month for the next five years. The Post Office Monthly Income Scheme is one of the few government-backed options that pays interest monthly rather than quarterly or annually, which makes it particularly relevant for retirees and anyone who needs cash flow rather than capital appreciation. This guide covers the formula, the current rates, the deposit limits, and the rules that determine how much you actually take home.
The Post Office Monthly Income Scheme, commonly abbreviated as POMIS, is a small savings scheme administered by India Post and backed by the Government of India. An investor deposits a lump sum for a fixed tenure of five years. During that period, the post office pays interest every month. At maturity, the principal is returned in full.
The scheme sits alongside other post office savings instruments — Time Deposits, Recurring Deposits, the Senior Citizens' Savings Scheme, and Public Provident Fund — but occupies a distinct niche. It is not designed to compound wealth. It is designed to convert a capital sum into a steady income stream without exposing the investor to market risk. For a retiree with a lump sum from gratuity or provident fund, that distinction matters enormously.
The monthly payout structure is the scheme's defining feature. SCSS, the other major post office income scheme, pays quarterly. Bank fixed deposits often pay at maturity or offer a monthly payout at a reduced rate. MIS pays the full applicable rate monthly, with no reduction for choosing the payout option. That simplicity is part of its appeal.
The arithmetic behind the Post Office MIS calculator is straightforward. There is no compounding, no step-up, and no variable component. The formula is a simple division:
Every input is known in advance except the interest rate, which the government revises quarterly. Once you know the rate applicable to your account, the monthly figure is fixed for the entire five-year term. The rate does not change during the tenure, even if the government revises rates for new accounts. That certainty is the scheme's central promise.
The calculator also returns the total interest earned over five years, which is simply the monthly income multiplied by 60. It does not deduct tax, because tax depends on the investor's slab and is not withheld at source. It does not account for premature closure penalties, because those apply only if the account is closed before maturity.
The interest rate for the July–September 2026 quarter is 7.4% per annum, payable monthly[reference:0]. This is the rate that applies to accounts opened during this quarter. The government reviews small savings scheme rates every three months, and the rate for a new account is the one in force on the date of opening. Once locked in, it remains unchanged for the full five-year term.
The rate history is instructive. In 2015, MIS paid 8.4%. It drifted downward through the late 2010s, touching 6.6% in 2020, before recovering to the current 7.4%[reference:1]. The direction of travel matters less than the fact that the rate is set by the government and is not negotiable. You either accept the prevailing rate or wait for the next quarter's revision.
The scheme has clear boundaries on who can invest and how much.
The joint account structure deserves attention. When three adults hold a joint account, each has an equal one-third share. For two holders, the share is one-half each. That share counts against the individual's ₹9 lakh cap. So a person who holds a ₹15 lakh joint account with two other adults has a ₹5 lakh share, leaving ₹4 lakh of their personal limit available for other MIS accounts[reference:2].
The table below shows monthly income at the current 7.4% rate for common deposit amounts. Each figure is calculated as (Deposit × 0.074) ÷ 12.
| Deposit Amount | Account Type | Monthly Income | Total Interest (5 Years) |
|---|---|---|---|
| ₹1,000 | Single | ₹6.17 | ₹370 |
| ₹1,00,000 | Single | ₹616.67 | ₹37,000 |
| ₹5,00,000 | Single | ₹3,083.33 | ₹1,85,000 |
| ₹9,00,000 | Single (maximum) | ₹5,550 | ₹3,33,000 |
| ₹15,00,000 | Joint (maximum) | ₹9,250 | ₹5,55,000 |
The ₹9 lakh single account is the highest-yielding option for an individual, generating ₹5,550 per month[reference:3]. A three-holder joint account at ₹15 lakh pays ₹9,250 monthly, which works out to ₹3,083 per holder — the same effective rate, but with a larger total corpus deployed.
For a deposit amount not shown in the table, the calculator on this page handles the arithmetic instantly. Enter the amount, confirm the applicable rate, and the monthly figure appears.
MIS is a five-year commitment, but it is not entirely locked. Premature closure is permitted after one year, subject to a penalty that depends on how long the account has been open.
The penalty applies to the principal, not to the interest earned. If you deposit ₹9 lakh and close after two years, the deduction is ₹18,000 (2% of ₹9 lakh). The interest already paid remains yours. That is an important distinction: the penalty reduces the amount returned, but it does not claw back monthly income already received[reference:4].
Investors seeking regular income from a lump sum typically compare three options. Each has a different rate, payout frequency, and eligibility rule.
| Feature | Post Office MIS | SCSS | Bank FD |
|---|---|---|---|
| Interest Rate (July–Sept 2026) | 7.4% | 8.2% | Varies (6.5%–7.5% typical) |
| Payout Frequency | Monthly | Quarterly | Monthly or quarterly, often at reduced rate |
| Eligibility | All resident Indians above 18 | Senior citizens only | All |
| Maximum Investment | ₹9 lakh single, ₹15 lakh joint | ₹30 lakh per individual | No regulatory cap (subject to bank limits) |
| Tax Benefit | None | Up to ₹1.5 lakh under Section 80C (old regime) | None for interest; principal under 80C only for tax-saver FDs |
| Tenure | 5 years | 5 years | Flexible |
SCSS pays a higher rate, but it is available only to investors aged 60 and above (with exceptions for retired defence personnel and others). For an eligible senior citizen, SCSS may generate more annual interest. On a ₹20 lakh investment, SCSS at 8.2% yields approximately ₹13,667 per month equivalent, while MIS at 7.4% yields ₹12,333[reference:5]. The difference is meaningful, but so is the eligibility barrier.
Bank FDs offer flexibility on tenure and often allow premature withdrawal with a smaller penalty. But FD rates are not government-set, and the deposit insurance cover is capped at ₹5 lakh per depositor per bank. MIS, by contrast, carries a sovereign guarantee on the full amount[reference:6].
The monthly interest from MIS is fully taxable. It is added to your total income and taxed according to the slab that applies to you. The post office does not deduct TDS on MIS interest, which means the entire monthly amount is credited to your account without withholding[reference:7]. You are responsible for reporting it in your income tax return.
There is no Section 80C deduction for the principal invested in MIS. Unlike PPF or SCSS, the scheme offers no tax incentive at the point of investment. The trade-off is liquidity of interest: you receive the full monthly payout and pay tax on it later, rather than having tax withheld upfront.
For investors in the 30% slab, the effective post-tax yield on a 7.4% MIS deposit is closer to 5.18%. That is still competitive with a taxable bank FD, but it is a reminder that the headline rate is not the same as the take-home rate.
A Post Office MIS joint account can be held by two or three adults. Each holder has an equal share, regardless of who contributed the funds. The account can be converted from single to joint and vice versa, and it can be transferred between post offices anywhere in India[reference:8].
Nomination is available at the time of opening or later. Up to four nominees can be registered, with specified shares. If the account holder dies, the nominee can claim the deposit with a death certificate, KYC documents, and a claim form. Without a nomination, legal heirs can claim up to ₹5 lakh through an affidavit and indemnity; higher amounts require a succession certificate. The ₹50 fee for changing or cancelling a nomination was removed in April 2025[reference:9].
A minor above 10 years can open an MIS account in their own name. A guardian can open an account on behalf of a minor or a person of unsound mind. When the minor reaches adulthood, the account can be converted to their name.
The rate for the July–September 2026 quarter is 7.4% per annum, payable monthly. The government revises small savings scheme rates every quarter. The rate that applies to your account is the one in force on the date you open it, and it remains fixed for the full five-year term.
Monthly income is calculated as (Deposit Amount × Annual Interest Rate) ÷ 12. For a ₹9 lakh deposit at 7.4%, the monthly income is (9,00,000 × 0.074) ÷ 12 = ₹5,550. For a ₹15 lakh joint account, it is ₹9,250 per month.
A single account can hold a maximum of ₹9 lakh. A joint account can hold up to ₹15 lakh, with two or three adult holders. An individual's total deposits across all MIS accounts, including their share in joint accounts, cannot exceed ₹9 lakh.
Premature closure is not allowed before one year. If closed between one and three years, a 2% deduction on the deposit applies. If closed after three years but before the five-year maturity, the deduction is 1%. Interest already paid is not clawed back.
Yes, the monthly interest is fully taxable according to your income tax slab. However, the post office does not deduct TDS on MIS interest. You must report the income in your ITR and pay tax at your applicable rate.
SCSS offers a higher rate — 8.2% for July–September 2026 — but is available only to senior citizens and pays interest quarterly. MIS pays monthly and is open to all adult resident Indians, but the rate is lower at 7.4%. For eligible seniors, SCSS may generate more annual income; for those under 60, MIS is the option.
Yes. A Post Office MIS joint account can be held by up to three adults. Each holder has an equal share in the account. The maximum deposit limit for a joint account is ₹15 lakh, and each holder's share counts against their individual ₹9 lakh cap.
The registered nominee can claim the deposit with a death certificate, KYC documents, and a claim form. If no nominee is registered, legal heirs can claim up to ₹5 lakh through an affidavit and indemnity. Amounts above ₹5 lakh require a succession certificate. Up to four nominees can be registered, with specified shares.
Yes. At maturity, the principal is returned in full, and you can open a new MIS account with the same funds. The rate for the new account will be the rate prevailing at that time, which may be higher or lower than your original rate. There is no automatic renewal; you must instruct the post office to open a new account or reinvest the amount.
No. A 5% bonus on the principal was available for accounts opened between 2007 and 2011. That provision was discontinued for accounts opened on or after 1 December 2011. The current scheme returns only the principal at maturity, with no additional bonus.
The Post Office MIS calculator simplifies a decision that involves several moving parts: the current rate, the deposit limit, the five-year lock-in, the monthly payout, and the tax treatment of that payout. For an investor who needs a predictable monthly income and values a sovereign guarantee over a slightly higher but less certain return, the scheme delivers exactly what it promises. Use the Post Office MIS calculator above to model your own deposit, confirm the monthly figure, and compare it against the other options on this site before committing your capital.