Post Office Monthly Income Scheme (MIS) Calculator — India
Find your fixed monthly payout from the Post Office Monthly Income Scheme (MIS) — a government-backed Indian savings scheme. Enter your investment and the current notified rate to see the monthly income, total interest over the tenure, and your effective annual yield.
%
months
Fixed monthly interest credited to your linked savings account
- 1
Monthly interest rate
7.4% ÷ 12 ÷ 100 = 0.006167The annual rate is divided by 12 months and 100 to convert from percentage. - 2
Monthly income payout
500,000 × 0.006167 = 3,083.33
How does this calculator work?
Monthly payout = Principal × (rate ÷ 12). At 7.4% p.a. (Q1 FY2024–25, editable), a ₹5 lakh investment pays ₹3,083 per month for 5 years, returning ₹5 lakh principal at maturity — total interest ₹1,85,000. No compounding; interest is simple and paid monthly. Rate is revised quarterly by Government of India.
Formula
How this is calculated
The Post Office Monthly Income Scheme (MIS) is a fixed-income savings product offered by India Post, backed by the Government of India. You deposit a lump sum for a fixed tenure of 5 years, and the Post Office pays you a fixed monthly interest, credited directly to your linked Post Office or bank savings account. On maturity, the original principal is returned in full. There is no compounding — interest is simple and paid out monthly, not reinvested.
The monthly payout is calculated as: Monthly payout = Principal × (Annual rate ÷ 12). As of Q1 FY2024–25 (April–June 2024), the notified rate is 7.4% per annum. The Ministry of Finance revises MIS rates quarterly based on G-Sec yields; always verify the current rate on the India Post website or the Ministry of Finance notification before investing. The effective annual yield (EAY) slightly exceeds the nominal rate because monthly payouts that you reinvest elsewhere compound.
Key scheme rules as of 2024: minimum deposit ₹1,000 (in multiples of ₹1,000); maximum ₹9,00,000 in a single account and ₹15,00,000 in a joint account; premature withdrawal is allowed after 1 year (with a penalty of 1–2% deducted from principal; no penalty after 3 years). This calculator does not model premature withdrawal penalties.
Frequently asked questions
Yes. MIS interest is fully taxable under the head "Income from Other Sources" in India. TDS (Tax Deducted at Source) is not deducted by India Post — you must declare the interest income in your Income Tax Return and pay tax at your applicable slab rate. MIS does not qualify for Section 80C deduction.
The 5% maturity bonus that existed under the old MIS rules was discontinued in 2011. Since then, you receive only the original principal at maturity — no bonus. All returns come exclusively from the monthly interest payouts over the 5-year tenure.
Premature closure is not allowed before 1 year. Between 1 and 3 years, 1% is deducted from the principal as a penalty. After 3 years but before maturity, 0.5% is deducted. After 5 years the account matures and the full principal is paid back. This calculator assumes you hold to maturity.
Also known as
TG we-Calculate Editorial Team. (2026). Post Office Monthly Income Scheme (MIS) Calculator — India [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/post-office-monthly-income-scheme-calculator
TG we-Calculate Editorial Team. "Post Office Monthly Income Scheme (MIS) Calculator — India." TG we-Calculate. 2026. https://we-calculate.com/calculator/post-office-monthly-income-scheme-calculator.
TG we-Calculate Editorial Team, "Post Office Monthly Income Scheme (MIS) Calculator — India," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/post-office-monthly-income-scheme-calculator
@misc{wecalculate_post_office_monthly_income_scheme_calculator, title = {Post Office Monthly Income Scheme (MIS) Calculator — India}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/post-office-monthly-income-scheme-calculator}}, year = {2026}, note = {TG we-Calculate} }
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