Post Office Monthly Income Scheme Calculator | POMIS Calculator
Your Post Office MIS Returns
Tax Impact Analysis
What is Post Office Monthly Income Scheme Calculator | POMIS Calculator?
A Post Office Monthly Income Scheme (MIS) Calculator is a financial tool designed to help investors calculate the monthly interest income, maturity value, and other key metrics related to the Post Office Monthly Income Scheme. This government-backed investment scheme offered by India Post provides a steady monthly income to investors while ensuring capital safety and guaranteed returns.
Understanding the Post Office MIS Calculator
The Post Office MIS Calculator simplifies complex interest calculations by providing instant and accurate projections based on your investment amount, current interest rates, and investment tenure. It helps you make informed decisions about your investment in this popular fixed-income scheme by showing you exactly what to expect in terms of returns and income flow.
Key functions of our MIS Calculator include:
- Monthly Income Calculation: Determine how much interest income you'll receive each month
- Maturity Value Projection: See the total amount you'll receive at the end of the tenure
- Investment Planning: Calculate how much to invest to achieve a specific monthly income
- Tax Impact Assessment: Understand the post-tax income based on your tax bracket
- Return Comparison: Compare MIS returns with other fixed-income investments
About the Post Office Monthly Income Scheme
The Post Office Monthly Income Scheme is one of India's most popular investment options for those seeking regular income with minimal risk. Offered by the Department of Posts under the Ministry of Communications, this scheme is particularly favored by retirees, pensioners, and risk-averse investors looking for steady returns.
Key Features of Post Office MIS
- Investment Tenure: 5 years (fixed)
- Interest Rate: Currently 7.4% per annum (subject to change as per government notifications)
- Interest Payout: Monthly, credited directly to your linked savings account
- Minimum Investment: ₹1,000 (and in multiples of ₹1,000 thereafter)
- Maximum Investment:
- ₹9,00,000 for single account
- ₹15,00,000 for joint account (maximum of 3 holders)
- Premature Withdrawal: Allowed after 1 year (with penalty)
- Tax Status: Interest income is fully taxable as per the investor's income tax slab
- TDS Applicability: TDS is applicable on interest income as per Income Tax rules
Eligibility for Post Office MIS
- Any Indian resident aged 18 years or above can open an MIS account
- Minor accounts can be opened by guardians on behalf of minors
- Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible
- The scheme is available at all post offices across India
Documents Required
- Identity proof (Aadhaar, PAN, Passport, Voter ID, etc.)
- Address proof
- Recent passport-sized photographs
- Initial investment amount (cash up to ₹10,000 or cheque/DD for higher amounts)
How Does the Post Office MIS Calculator Work?
Our calculator uses the following formula to calculate your monthly interest income from a Post Office MIS investment:
Monthly Interest = (Principal Amount × Annual Interest Rate) ÷ 12
For example, for a ₹5,00,000 investment at 7.4% annual interest rate:
Monthly Interest = (₹5,00,000 × 7.4%) ÷ 12 = ₹3,083.33
The calculator also provides additional insights such as:
- Total Interest Earned: Monthly interest × 60 months (5 years)
- Maturity Amount: Original principal amount
- Annual Interest Income: Monthly interest × 12
- Post-Tax Monthly Income: Calculated based on your income tax slab
Note: The Post Office MIS is a pure interest-paying scheme. Unlike other investments with compounding interest, the principal remains the same throughout the tenure and is returned at maturity. Only the interest is paid out monthly.
How Post Office MIS Compares to Other Fixed-Income Options
| Feature | Post Office MIS | Bank Fixed Deposit | Senior Citizen Savings Scheme |
|---|---|---|---|
| Current Interest Rate | 7.4% p.a. | 5.5% - 7.0% p.a. | 8.2% p.a. |
| Interest Payout | Monthly | Monthly/Quarterly/Cumulative | Quarterly |
| Tenure | 5 years (fixed) | 7 days to 10 years | 5 years (extendable by 3 years) |
| Maximum Investment | ₹9L (single), ₹15L (joint) | No limit | ₹15L |
| Early Withdrawal | After 1 year (with penalty) | Anytime (with penalty) | After 1 year (with penalty) |
| Government Guarantee | Yes | Up to ₹5L (DICGC) | Yes |
| Tax Benefits | None | TDS exemption up to ₹40,000 | Section 80C benefits |
Note: Interest rates mentioned are indicative and subject to change as per government and banking regulations.
Ideal Scenarios for Using Post Office MIS
Retirement Planning
Perfect for retirees looking to generate regular monthly income from their retirement corpus. The guaranteed returns and government backing make it a reliable source of income for day-to-day expenses.
Regular Income Needs
Ideal for those who need a predictable income stream to supplement their existing earnings or to cover recurring expenses like rent, EMIs, or household bills.
Risk-Free Investment
Suitable for risk-averse investors who prioritize capital protection over potentially higher but uncertain returns from market-linked investments.
Portfolio Diversification
A valuable addition to an investment portfolio to balance higher-risk investments with a stable, fixed-income component that provides regular cash flow.
Financial Support for Dependents
Can be used to create a guaranteed income stream for dependent family members or for specific recurring financial commitments.
Short-term Financial Goals
With a 5-year tenure, it's suitable for mid-term financial goals where both capital preservation and regular income are important.
Why Use Our Post Office MIS Calculator?
Our Post Office MIS Calculator takes the guesswork out of planning your investment in this popular government-backed scheme. By providing accurate projections of your monthly income, total returns, and maturity value, it helps you make informed decisions aligned with your financial goals.
Whether you're planning for retirement, looking to create a steady income stream, or simply want to understand how your existing MIS investment is performing, our calculator offers the clarity and insights you need to optimize your investment strategy.
Try our Post Office MIS Calculator today to take control of your fixed-income investments and secure a predictable financial future.
Examples
The Post Office Monthly Income Scheme (MIS) Calculator helps you determine the monthly income and total returns from your investment in this popular government-backed scheme. Here are some practical examples to understand how it works:
Example 1: Basic MIS Calculation
Scenario:
Rajesh wants to invest in Post Office MIS for a steady monthly income. He has ₹4,50,000 to invest for 5 years.
Calculation:
- Principal Amount: ₹4,50,000
- Interest Rate: 6.7% per annum (current rate)
- Tenure: 5 years (60 months)
- Monthly Interest Calculation: (₹4,50,000 × 6.7%) ÷ 12 = ₹2,512.50
Result:
By investing ₹4,50,000 in Post Office MIS, Rajesh will receive ₹2,512.50 every month for 5 years, providing a steady supplementary income. Upon maturity, he will get back his entire principal amount of ₹4,50,000.
Example 2: Joint Account MIS Calculation
Scenario:
Priya and her husband want to invest in a joint MIS account to maximize their investment limit. They decide to invest ₹9,00,000 (the maximum allowed for joint accounts).
Calculation:
- Principal Amount: ₹9,00,000
- Interest Rate: 6.7% per annum
- Tenure: 5 years (60 months)
- Monthly Interest Calculation: (₹9,00,000 × 6.7%) ÷ 12 = ₹5,025
Result:
With a joint account, Priya and her husband can invest up to ₹9,00,000, twice the individual limit. This generates a monthly income of ₹5,025, which is double what they would receive with a single account, making it an excellent option for couples planning for retirement or supplementary income.
Example 3: MIS with Tax Impact
Scenario:
Sunita, a senior citizen in the 20% tax bracket, invests ₹4,50,000 in MIS. She wants to understand her post-tax returns.
Calculation:
- Principal Amount: ₹4,50,000
- Interest Rate: 6.7% per annum
- Monthly Interest Income: ₹2,512.50
- Annual Interest Income: ₹30,150
- TDS Deduction: None (if Form 15G/15H submitted)
- Tax Liability: ₹30,150 × 20% = ₹6,030 per year
- Monthly Income After Tax: (₹30,150 - ₹6,030) ÷ 12 = ₹2,010 per month
Result:
This example demonstrates how taxation affects the actual returns from MIS. While the pre-tax interest rate is 6.7%, Sunita's effective post-tax return is approximately 5.36%. Senior citizens should consider filing Form 15H to avoid TDS if their total income is below the taxable limit.
Example 4: MIS vs Bank Fixed Deposit
Scenario:
Anil is considering investing ₹3,00,000 for 5 years. He is comparing Post Office MIS with a bank fixed deposit offering a monthly interest payout at 5.8% p.a.
Calculation:
| Parameter | Post Office MIS (6.7%) | Bank FD (5.8%) |
|---|---|---|
| Principal Amount | ₹3,00,000 | ₹3,00,000 |
| Monthly Income | ₹1,675 (₹3,00,000 × 6.7% ÷ 12) |
₹1,450 (₹3,00,000 × 5.8% ÷ 12) |
| Total Interest (5 years) | ₹1,00,500 | ₹87,000 |
| Premature Withdrawal Penalty | 2% if withdrawn before 3 years | 1% penalty on applicable rate |
| Government Guarantee | Yes | Insured up to ₹5 lakhs by DICGC |
Result:
Post Office MIS offers Anil ₹225 more in monthly income compared to a bank FD, resulting in ₹13,500 higher returns over 5 years. Additionally, MIS provides government-backed security, making it an attractive option for risk-averse investors seeking regular income.
Example 5: MIS for Retirement Planning
Scenario:
Mohan, aged 58, is nearing retirement and wants to create a monthly income stream. He plans to invest his retirement corpus of ₹18,00,000 across multiple MIS accounts to stay within investment limits.
Calculation:
- Total Corpus: ₹18,00,000
- Individual MIS Account Limit: ₹4,50,000
- Joint MIS Account Limit: ₹9,00,000
- Distribution Strategy:
- Individual Account (Mohan): ₹4,50,000
- Individual Account (Mohan's Wife): ₹4,50,000
- Joint Account (Mohan and Wife): ₹9,00,000
- Interest Rate: 6.7% per annum
Result:
By strategically distributing his retirement corpus across multiple MIS accounts, Mohan creates a monthly income of ₹10,050 without exceeding investment limits. This approach provides a stable income stream during retirement while preserving the principal amount. After 5 years, he can choose to reinvest the matured amount in similar schemes to continue the income flow.
Key Takeaways from These Examples:
- Regular Income: Post Office MIS provides a reliable monthly income, making it suitable for retirees and those seeking regular cash flow.
- Investment Limits: Understanding single (₹4.5 lakhs) and joint (₹9 lakhs) account limits helps maximize investments through strategic account distribution.
- Tax Implications: The interest earned is fully taxable, so factor in your tax bracket when calculating actual returns.
- Comparative Advantage: MIS typically offers higher interest rates than most bank FDs with similar tenure, along with government-backed security.
- Maturity Benefit: At maturity, you receive your entire principal amount, which can be reinvested to continue the income stream.
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How to Use Post Office Monthly Income Scheme Calculator | POMIS Calculator
Our Post Office Monthly Income Scheme (MIS) Calculator helps you quickly determine the monthly interest income, total returns, and maturity amount from your Post Office MIS investment. Follow these simple steps to make the most of this calculator and plan your regular income stream.
Enter Investment Amount
Input the amount you plan to invest in the Post Office MIS account:
- The minimum investment amount allowed is ₹1,000 and must be in multiples of ₹1,000
- The maximum investment limit is ₹9,00,000 for a single account
- For joint accounts, the maximum limit is ₹15,00,000
Tip: If you're planning to invest more than the maximum limit, consider opening multiple accounts or a joint account with a family member.
Select Account Type
Choose the type of account you plan to open:
- Single Account: For individual investment with a maximum limit of ₹9,00,000
- Joint Account: For two adults jointly, with a maximum limit of ₹15,00,000
Note: The joint account option allows for higher investment limits but requires both account holders to provide KYC documents.
Check Current Interest Rate
The calculator will display the current interest rate applicable to Post Office MIS:
- The interest rate is predetermined by the government and is reviewed quarterly
- The current rate is 7.4% per annum
- Once you invest, this rate remains fixed for the entire 5-year tenure
Note: Our calculator automatically updates with the latest interest rates as announced by the government.
Specify Investment Date (Optional)
You can optionally select the date of investment:
- This helps in tracking when your scheme will mature
- If not specified, the calculator will use the current date as the default
Tip: The monthly interest is payable from the date of completion of one month from the date of deposit. For example, if you invest on the 10th of a month, you'll receive your first payment on the 10th of the following month.
Calculate and Review Results
Click the "Calculate" button to generate your Post Office MIS returns. The results will display:
- Monthly Interest Income: The fixed amount you'll receive every month
- Total Interest Earned: The sum of all monthly interest payments over 5 years
- Maturity Amount: The original principal amount that will be returned at the end of 5 years
- Maturity Date: The date when your investment will complete its 5-year tenure
- Total Returns: The combined value of total interest earned plus the principal amount
Advanced Calculator Features
Tax Calculation
Our calculator can also estimate the tax implications of your MIS investment:
- Select the "Show Tax Calculations" option
- Input your income tax slab rate
- The calculator will show your monthly and annual tax liability on the interest income
- You'll also see the net monthly income after tax deduction
Note: Interest earned from Post Office MIS is fully taxable as per your income tax slab. TDS may be applicable if the interest exceeds the threshold as per income tax rules.
Reinvestment Analysis
You can see how your returns would differ if you reinvest the monthly interest:
- Click on the "Reinvestment Analysis" tab
- Input an expected annual return rate for the reinvestment
- The calculator will show how much your monthly interest payments could grow if reinvested
Tip: This feature is helpful for those who don't need the monthly income immediately and prefer to reinvest for potentially higher returns.
Premature Withdrawal Calculation
Understand the impact of withdrawing your investment before maturity:
- Select the "Premature Withdrawal" option
- Input the expected withdrawal date
- The calculator will show the penalty amount and the net amount you'll receive
Note: Premature withdrawal from MIS attracts a penalty of 2% if withdrawn after 1 year but before 3 years, and 1% if withdrawn after 3 years but before 5 years.
Tips for Accurate Results
- Verify Current Interest Rates: Always double-check that the calculator is using the most current interest rate for Post Office MIS. Rates are subject to change quarterly.
- Consider Tax Implications: Remember that the interest income is taxable as per your income tax slab. Factor this in when planning your expected net income.
- Account for Inflation: The fixed monthly income from MIS will not increase over time. Consider how inflation might affect the real value of your income over the 5-year period.
- Multiple Investments Strategy: If you want to invest more than the maximum limit, consider staggering your investments over different months to create a ladder of maturity dates.
- Compare with Other Schemes: Use our other calculators to compare Post Office MIS returns with schemes like SCSS, PPF, or bank fixed deposits to make informed investment decisions.
Common Usage Scenarios
Retirement Planning
Calculate how much you need to invest in MIS to generate a specific monthly income to supplement your pension. Input different investment amounts until you reach your desired monthly income figure.
Tax Planning
Use the tax calculation feature to understand how your MIS interest will affect your overall tax liability for the financial year, especially if you have other sources of income.
Investment Comparison
Compare the returns from Post Office MIS with other fixed income options. Calculate the returns from the same amount invested in different schemes to determine which one suits your income needs better.
Financial Goal Setting
If you have specific monthly income requirements for the future (like child's education expenses), use the calculator to determine how much you should invest today to meet those future needs.
Frequently Asked Questions
Can I modify my investment amount after using the calculator?
Yes, you can return to the calculator and input different investment amounts to see how they affect your monthly income. This allows you to adjust your investment strategy before actually investing.
Does the calculator account for changes in interest rates?
The calculator uses the current interest rate for Post Office MIS. While rates may change quarterly, once you invest, your rate remains fixed for the entire 5-year tenure. The calculator does not predict future rate changes for new investments.
Can I calculate returns for different account types simultaneously?
Currently, you'll need to perform separate calculations for different account types. However, you can easily switch between single and joint account options and recalculate to compare the results.
How accurate is the tax calculation?
The tax calculation provides a close estimate based on the income tax slab you provide. However, for comprehensive tax planning, consult a tax professional as your actual tax liability may depend on other income sources and applicable deductions.
Advantages of Post Office Monthly Income Scheme Calculator | POMIS Calculator
The Post Office Monthly Income Scheme (MIS) Calculator offers valuable benefits for investors seeking reliable monthly income with government backing. Understanding these advantages can help you make informed decisions about this popular fixed-income investment option.
Instant Income Calculation
The Post Office MIS Calculator immediately shows you how much monthly income you'll receive from your investment, eliminating the need for complex manual calculations. This quick insight lets you assess if the scheme meets your regular income needs before committing your funds.
Example: For a ₹5,00,000 investment at 7.4% interest, the calculator instantly shows you'll receive ₹3,083 monthly instead of having to calculate it manually.
Income Planning Accuracy
By providing precise monthly and annual income projections, the calculator helps you determine exactly how much to invest to achieve your desired income level. This precision is particularly valuable for retirees and others who depend on regular income for daily expenses.
Example: If you need ₹10,000 monthly income, the calculator shows you need to invest approximately ₹16.22 lakhs, giving you a clear saving target.
Total Returns Visibility
The calculator shows both monthly income and total returns over the entire 5-year period, giving you complete transparency about what you'll earn from your investment. This comprehensive view helps you compare MIS with other investment options on a fair basis.
Example: For a ₹5,00,000 investment, the calculator shows not just the ₹3,083 monthly income but also that you'll earn a total of ₹1,85,000 in interest over 5 years plus your principal back.
Investment Optimization
The calculator allows you to experiment with different investment amounts to find the optimal balance between your available funds and desired income. This optimization helps you allocate your savings efficiently across different investment avenues.
Example: You can quickly compare how investing ₹3 lakhs vs. ₹5 lakhs affects your monthly income, helping you decide if the additional investment justifies the increased returns.
Tax Impact Assessment
Advanced versions of the Post Office MIS Calculator factor in tax implications, showing you the post-tax returns based on your income tax slab. This feature gives you a more realistic picture of your actual income after accounting for tax liabilities.
Example: If you're in the 20% tax bracket, the calculator shows that your effective monthly income from a ₹5,00,000 investment would be approximately ₹2,466 after taxes.
Maturity Planning
By calculating the exact maturity date based on your investment date, the calculator helps you plan for what to do with your principal amount when the scheme ends. This forward-looking approach enables seamless financial planning beyond the current investment period.
Example: If you invest on April 15, 2024, the calculator shows your maturity date as April 15, 2029, helping you plan for reinvestment or use of funds at that time.
Premature Withdrawal Estimation
Advanced MIS calculators can compute the net amount you would receive in case of premature withdrawal, accounting for applicable penalties. This feature helps you assess the financial impact of early withdrawal if your circumstances change unexpectedly.
Example: If you need to withdraw after 2 years, the calculator shows you'll pay a 2% penalty, reducing your ₹5,00,000 principal to ₹4,90,000, helping you decide if early withdrawal is worth it.
Scenario Comparison
The calculator facilitates easy comparison between different scenarios, such as single vs. joint accounts or current rates vs. previous rates. This comparative analysis helps you make more informed decisions based on your specific situation and objectives.
Example: You can instantly compare the benefits of a single account with ₹9 lakhs versus a joint account with ₹15 lakhs, seeing how the monthly income differs in each case.
Investment Diversification Planning
By providing clear return metrics, the calculator helps you determine how much of your portfolio to allocate to Post Office MIS as part of your overall investment strategy. This clarity aids in creating a well-balanced portfolio across different asset classes and risk levels.
Example: Seeing that a ₹5,00,000 MIS investment yields 7.4% annual returns helps you decide whether to allocate more to MIS or to other investments based on your return expectations and risk tolerance.
Security Validation
The calculator quantifies the benefits of government-backed security combined with decent returns, helping risk-averse investors assess the value proposition of Post Office MIS. This objective assessment is particularly valuable for conservative investors prioritizing capital protection.
Example: Comparing the 7.4% assured returns from MIS with volatile market investments helps you quantify the value of the government guarantee and predictable income.
Frequently Asked Questions
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a government-backed investment scheme that provides regular monthly income to investors. It's a low-risk, fixed-income investment option offered by India Post, providing guaranteed returns paid out monthly.
What is the interest rate for Post Office MIS?
The Post Office MIS interest rate is set by the government and is reviewed quarterly. As of 2023, the interest rate is 7.4% per annum, paid monthly. This rate is generally higher than regular savings accounts and competitive with many bank fixed deposits.
What is the minimum and maximum investment amount for POMIS?
The minimum investment amount for POMIS is ₹1,000, and investments must be in multiples of ₹1,000. The maximum investment limit is ₹4.5 lakh for a single account and ₹9 lakh for a joint account. An individual can invest up to ₹9 lakh across all their MIS accounts.
What is the tenure of the Post Office MIS?
The Post Office Monthly Income Scheme has a fixed tenure of 5 years (60 months). Premature withdrawal is allowed after 1 year, but with a penalty—2% of the deposit amount if withdrawn before 3 years and 1% if withdrawn after 3 years but before 5 years.
Is the interest from Post Office MIS taxable?
Yes, the interest earned from Post Office MIS is fully taxable as per the investor's income tax slab rate. There is no TDS (Tax Deducted at Source) on MIS interest, but investors need to declare this income and pay tax accordingly. No tax exemption is available for POMIS investments under Section 80C or any other section.