BlogBanking

Post Office MIS calculator

Work out the monthly income from a Post Office Monthly Income Scheme deposit at the current 7.4% rate, what is left after tax, and what reinvesting the payouts adds.

Last reviewed

Your MIS deposit

Current rate 7.4% a year (Oct–Dec 2026), paid every month for 5 years.

Account typeLimit ₹9,00,000 single, ₹15,00,000 joint
₹
₹1,000₹9 L
% p.a.
4%10%
Your tax slabMIS interest is taxed at your slab rate

Deposits are in multiples of ₹1,000. The rate is locked in for 5 years when you open the account.

Your monthly income

₹9,00,000 at 7.4% for 5 years; the deposit is returned at maturity.

Monthly income₹5,550₹4,396 after tax at 20%
Deposit (returned at maturity)
₹9,00,000
Interest over 5 years
₹3,33,000
Interest a year
₹66,600
Tax a year
₹13,853
Monthly income₹5.55K
  • Put each payout into a 5-year Post Office RD at 6.7% and it grows to about ₹3,96,080, which is ₹63,080 more than taking the interest as cash.
  • POMIS interest is taxed at your slab every year. At 20%, that is about ₹13,853 a year, leaving ₹4,396 a month.
  • A joint account (up to three adults) raises the limit to ₹15,00,000, or ₹9,250 a month.
  • If you are 60 or older, the Senior Citizens Savings Scheme pays 8.2% quarterly, more than POMIS's 7.4%.

Payouts over 5 years

Interest is paid at the end of each month into your post office savings account.

Spend the payouts₹12,33,000deposit + interest received
Reinvest in an RD at 6.7%₹12,96,080deposit + RD maturity
YearInterest receivedTax at 20%Interest so farRD balance if reinvested
Year 1₹66,600₹13,853₹66,600₹69,053
Year 2₹66,600₹13,853₹1,33,200₹1,42,851
Year 3₹66,600₹13,853₹1,99,800₹2,21,718
Year 4₹66,600₹13,853₹2,66,400₹3,06,004
Year 5₹66,600₹13,853₹3,33,000₹3,96,080

The RD column assumes each month's payout is deposited into a 5-year Post Office RD, compounded quarterly. Tax is on the MIS interest only and includes 4% cess.

About this calculator

How to use the Post Office MIS calculator

  1. Choose a single or joint account.
  2. Enter your deposit (up to ₹9 lakh single or ₹15 lakh joint).
  3. Keep the current 7.4% rate or test another.
  4. Pick your tax slab to see the post-tax monthly income and the RD reinvestment value.

POMIS monthly income at 7.4%

DepositMonthlyYearly5 years
₹1,00,000₹617₹7,400₹37,000
₹3,00,000₹1,850₹22,200₹1,11,000
₹5,00,000₹3,083₹37,000₹1,85,000
₹9,00,000₹5,550₹66,600₹3,33,000
₹15,00,000₹9,250₹1,11,000₹5,55,000

Reinvest the payout to compound it

POMIS pays simple interest. If you do not need the income, open a 5-year Post Office RD at 6.7% and set up a standing instruction to move each payout into it. For a ₹9,00,000 deposit, the ₹5,550 monthly payouts grow to about ₹3,96,080, against ₹3,33,000 taken as cash.

POMIS formula

Monthly income = deposit × rate ÷ 12

The deposit is returned in full after 5 years. Interest is credited to your post office savings account every month.

Frequently asked questions

What is the Post Office MIS interest rate now?

7.4% a year for October–December 2026, paid monthly. The rate when you open the account stays fixed for its 5-year term.

How much can I invest in POMIS?

At least ₹1,000, in multiples of ₹1,000, up to ₹9,00,000 in a single account and ₹15,00,000 in a joint account of up to three adults. Your total across all MIS accounts, including your share of joint ones, cannot exceed ₹9,00,000.

How is the monthly income calculated?

Monthly income = deposit × rate ÷ 12. At 7.4%, ₹9,00,000 pays ₹5,550 a month, or ₹3,33,000 over 5 years. Interest is simple, not compounded.

Is POMIS interest taxable?

Yes. The interest is added to your income and taxed at your slab rate every year. There is no 80C deduction for MIS deposits. Declare the interest in your return even if no TDS is deducted.

Can I close POMIS before 5 years?

Not in the first year. Between 1 and 3 years, 2% of the deposit is deducted; between 3 and 5 years, 1% is deducted. The interest already paid is not recovered.

What happens at maturity?

After 5 years you get your full deposit back. You can open a new account at the rate then in force. If interest payouts are not withdrawn, they do not earn extra interest in the MIS itself, so move them to an RD or savings account.

Related calculators

Keep planning with these tools.

Sources

Add this calculator to your website

Free for blogs and businesses. Paste this code into your page. More options

<iframe src="https://blogbanking.com/embed/post-office-mis-calculator" title="Post Office MIS calculator" loading="lazy" style="width:100%;height:900px;border:0;" data-blogbanking="post-office-mis-calculator"></iframe>
<p style="font-size:13px;margin:4px 0 0;">Post Office MIS calculator by <a href="https://blogbanking.com/post-office-mis-calculator">BlogBanking</a></p>
<script>addEventListener("message",function(e){if(e.origin!=="https://blogbanking.com"||!e.data||e.data.type!=="blogbanking:height")return;document.querySelectorAll('iframe[data-blogbanking="'+e.data.tool+'"]').forEach(function(f){f.style.height=e.data.height+"px";});});</script>
Results are estimates for illustration, not tax or financial advice.