Post Office MIS Calculator (Monthly Income Scheme)
Post Office MIS Calculator (Monthly Income Scheme)
The monthly income a Post Office Monthly Income Scheme deposit pays, what is left after your tax, and what it is worth as prices rise over the five years.
Post Office MIS monthly income
$9,00,000 in Post Office MIS at 7.4%, no tax, 4% inflation
The monthly payout
- P
- the amount deposited, repaid in full at the end of five years
- r
- the annual rate as a decimal; interest is paid out every month, not added to the deposit, so it does not compound
- tax
- your own tax rate on the interest, taken from each payout
Worked example
$9,00,000 in Post Office MIS at 7.4%, no tax, 4% inflation
Monthly payout = 9,00,000 × 0.074 ÷ 12 = $5,550
Over five years: 60 payouts = $3,33,000
The last payout, in 5 years, is worth 5,550 ÷ 1.045 = $4,562 in today's money
At a 30% tax rate the payout is $3,885 a month
Monthly income at 7.4%
| Deposit | Each month | Each year | Over 5 years |
|---|---|---|---|
| $1,00,000 | $617 | $7,400 | $37,000 |
| $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 |
How the Monthly Income Scheme pays
The Post Office Monthly Income Scheme (the National Savings Monthly Income Account) takes a single deposit for five years and pays the interest out every month — the yearly rate divided by twelve, on the whole deposit. The deposit itself comes back at the end. Because the interest is paid out rather than added, it does not compound. At 7.4%, $9,00,000 pays $5,550 a month, $66,600 a year.
The rate for accounts opened in July–September 2026 is 7.4% a year, unchanged from the previous quarter, under the Ministry of Finance’s office memorandum of 30 June 2026. It is fixed for the five years of that account. The next rate is due at the end of September.
Limits: at least ₹1,000, in multiples of ₹1,000, and at most ₹9 lakh in a single account or ₹15 lakh in a joint account, raised on 31 March 2023. The account can be closed after a year, but early closure costs a part of the deposit.
Tax: the interest is taxable. Enter your own rate and the page takes it from every payout; at 30% the example pays $3,885 a month. It does not know your slab; the Income-tax Act, 2025 took effect on 1 April 2026, so check the current rules.
A fixed monthly income loses buying power as prices rise. At 4% inflation, the last payment in five years buys what $4,562 buys today, and the returned deposit is worth $7,39,734. Retired readers may also compare the SCSS calculator; for a bank deposit with monthly payout, the FD calculator; for withdrawals from an investment, the SWP calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
What is the Post Office MIS interest rate now?
7.4% a year, paid monthly, for accounts opened in July–September 2026 (Ministry of Finance office memorandum of 30 June 2026).
How much monthly income will 9 lakh in POMIS give?
$5,550 a month at 7.4%, before tax — $66,600 a year and $3,33,000 over five years.
What is the maximum MIS deposit?
₹9 lakh in a single account and ₹15 lakh in a joint account, from 31 March 2023.
Does the interest compound?
No. It is paid out every month. If you reinvest it yourself, for example in a recurring deposit, that is a separate calculation.
Related calculators
References
- Ministry of Finance (Department of Economic Affairs). National Savings (Monthly Income Account) Scheme, 2019 (Gazette of India, 12 December 2019): interest paid monthly, five-year term, deposit repaid at maturity. National Savings (Monthly Income Account) (Amendment) Scheme, 2023, G.S.R. 239(E), 31 March 2023: maximum ₹9 lakh in a single account and ₹15 lakh in a joint account (Department of Posts SB Order 07/2023).
- Government of India, Ministry of Finance (Department of Economic Affairs). Office Memorandum F.No.1/4/2019-NS dated 30 June 2026: rates on small savings schemes for 1 July – 30 September 2026 (second quarter of FY 2026-27) unchanged from the first quarter — Sukanya Samriddhi 8.2%, National Savings Certificate 7.7% and Kisan Vikas Patra 7.5% (maturing in 115 months), all compounded yearly; Senior Citizens’ Savings Scheme 8.2%, paid quarterly; Monthly Income Account 7.4%, paid monthly. As listed by Indian Bank, “Interest rates for Small Savings Schemes” (accessed 22 September 2026).
- Income-tax Act, 1961, replaced from 1 April 2026 by the Income-tax Act, 2025, which renumbers its provisions. Tax on small-savings interest and on NPS withdrawals depends on the current Act, your regime and your slab; this page states no rate.
- Central-bank inflation targets used as default inflation by currency: Reserve Bank of India (4% CPI, flexible inflation targeting framework); U.S. Federal Reserve (2% PCE); European Central Bank (2%); Bank of England (2% CPI); Bank of Canada (2%); Reserve Bank of Australia (2–3%); Bangko Sentral ng Pilipinas (3% ± 1). Actual inflation often runs above target.