Post Office MIS Calculator (Monthly Income Scheme) — Free (2026)

Understanding Post Office MIS

Post Office Monthly Income Scheme (MIS) is a government-backed savings scheme designed to provide regular monthly income to investors.

Our Post Office MIS Calculator helps you calculate monthly income and maturity amount.

What is Post Office MIS?

MIS is a fixed-income savings scheme offered by India Post.

Key Features:

• Maturity Period: 5 years
• Interest Rate: 7.4% per annum (as of 2025, subject to change quarterly)
• Payout: Monthly interest
• Minimum Investment: ₹1,000
• Maximum Investment: ₹9,00,000 (individual), ₹18,00,000 (joint)
• Eligibility: Indian citizens, 10+ years for minors

MIS Monthly Income Calculation

Formula: Monthly Income = (Principal × Interest Rate) / (12 × 100)

Example:

• Investment: ₹10,00,000
• Interest Rate: 7.4% per annum
• Monthly Income = (10,00,000 × 7.4) / (12 × 100) = ₹6,167/month

MIS Maturity Calculation

At Maturity (5 years):

Maturity Amount = Principal + Total Interest Earned

Total Interest = Monthly Income × 60 months

Example:

• Principal: ₹10,00,000
• Monthly Income: ₹6,167
• Total Interest (60 months): ₹6,167 × 60 = ₹3,70,020
• Maturity Amount: ₹13,70,020

MIS vs. Other Income Schemes

Scheme	Interest	Payout	Liquidity
MIS	7.4%	Monthly	Withdrawal after 1 year
Bank Savings	2.5-4%	Quarterly	Instant
Senior Citizen Scheme	8.2%	Quarterly	Withdrawal after 1 year
Recurring Deposit	5-7%	At maturity	Fixed tenure

Tax Treatment of MIS Interest

Income Tax:

• Fully taxable as income from other sources
• Monthly interest is taxable in the year received

TDS:

• If annual income exceeds ₹1 lakh, TDS of 20% applied
• Need to file ITR to claim refund

Section 80C:

• MIS investment NOT eligible for Section 80C deduction
• Interest is not exempt

Withdrawal Rules

Before 1 year: No withdrawal allowed

After 1 year (up to maturity):

• Can withdraw up to 50% of balance
• Remaining principal continues earning interest
• Interest continues on remaining balance

At Maturity: Full principal + interest paid

MIS Returns Comparison

Scenario: ₹5,00,000 investment for 5 years @ 7.4%

MIS:

• Monthly Income: ₹3,083
• Total Income (60 months): ₹1,84,980
• Maturity Amount: ₹6,84,980

Recurring Deposit (RD) @ 6% (quarterly compounding):

• Monthly Deposit: ₹8,333
• Maturity Amount: ₹5,36,730
• Total Interest: ₹36,730

Fixed Deposit (FD) @ 7%:

• Maturity Amount: ₹7,01,275
• Total Interest: ₹2,01,275

Best Option Depends on:

• Need for monthly income: MIS
• Flexibility to save regularly: RD
• One-time investment: FD

Advantages and Disadvantages

Advantages:

• Government-backed security
• Fixed monthly income (good for retirees)
• Decent returns (7.4%)
• Offline and online investment options
• No TDS for low-income earners

Disadvantages:

• Interest is fully taxable (not like PPF)
• 5-year lock-in period
• No Section 80C benefit
• Returns lower than stock market
• Interest rate subject to government changes

Example

Post Office Monthly Income Scheme Calculation

Scenario: Investment of ₹5,00,000 at current 6.7% interest rate for 5 years

Monthly Income Calculation:

• Principal (P) = ₹5,00,000
• Annual Interest Rate = 6.7%
• Monthly Interest = (P × Rate) ÷ (100 × 12)
• Monthly Interest = (5,00,000 × 6.7) ÷ 1200 = ₹2,791.67 per month

Total Income over 5 Years:

• Monthly Income × 60 months = ₹2,791.67 × 60 = ₹1,67,500
• Principal returned at maturity = ₹5,00,000
• Total Received = ₹6,67,500

Formula

Calculation Formula

This calculator uses the following formula:

Result = (Input × Factor) + Adjustment

The specific calculation depends on:

• Input parameters you provide
• Applicable rates for the current period
• Any applicable adjustments or deductions

Understanding the Components

Each calculation component serves a specific purpose:

• Base Amount: The primary value being calculated
• Rate/Factor: The percentage or multiplier applied
• Adjustments: Additional items that affect the result
• Deductions: Amounts subtracted from the total

How to Use the Calculator

1. Enter the required input values
2. Select applicable options or rates
3. Review the detailed calculation breakdown
4. Check the final result

Post Office Monthly Income Scheme (MIS) Features

Investment Flexibility:

• Minimum: ₹1,500
• Maximum: ₹4.5 lakhs per individual, ₹9 lakhs jointly
• Maturity: 5 years
• Can open multiple accounts to increase investment

Monthly Income Calculation: At current 7.4% annual interest:

• ₹1,00,000 investment → ₹617/month income
• ₹5,00,000 investment → ₹3,083/month income
• ₹4.5,00,000 investment → ₹27,750/month income

Withdrawal Options:

• After 1 year: Withdraw up to 50% of deposit or interest earned
• After 5 years: Get full amount + accrued interest
• Partial withdrawal after maturity: Available

Tax Implications:

• Monthly income is fully taxable as per your income slab
• Post-maturity amount taxable as interest
• No TDS for senior citizens (65+)
• TDS deducted at 10% if interest >₹10,000

Comparing with Other Schemes:

vs. Bank Fixed Deposit:

• Bank FD: 5-6% with lumpsum
• MIS: 7.4% with monthly income
• MIS better if you need monthly income

vs. Senior Citizens Savings Scheme:

• SCSS: 7.4% annual (same rate)
• SCSS: 5-year maturity, income quarterly
• Both similar, choose based on payout frequency

vs. Recurring Deposit:

• RD: Monthly deposits, 6% interest
• MIS: Single deposit, 7.4% interest
• MIS better for better rate and flexibility

Post Office Schemes Comparison

Why Choose Post Office MIS Over Banks:

• Safety backed by government guarantee
• No stress on investment returns verification
• Fixed, predictable income (interest rate doesn't change)
• Lower interest but complete capital safety

MIS vs Other Post Office Schemes:

• MIS (Monthly Income): Best for current income needs
• NSC (5-year): Better returns but longer lock-in
• KVP (Kisan Vikas Patra): 9-10 year maturity, good for growth
• PPF (Public Provident Fund): Best tax benefit and flexibility

MIS Tax Implications:

• Monthly interest is fully taxable as income
• Cannot claim any deduction on interest
• TDS applicable if annual interest > ₹10,000
• Recommend filing ITR even if below taxable limit

Frequently Asked Questions

Can I invest more than ₹9,00,000 in MIS?

Individual limit is ₹9,00,000. Joint account limit is ₹18,00,000. Investments beyond this are not accepted.

Is MIS interest taxable?

Yes, fully taxable as income. If annual interest exceeds ₹10,000, TDS is deducted. File ITR to claim refund if applicable.

Can I increase my MIS investment after opening?

No, investment amount is fixed at maturity. To invest more, open a separate MIS.

What happens if I withdraw at 4 years?

You can withdraw 50% of balance after 1 year. At 4 years, remaining principal + accrued interest for 4 years is paid.

Is MIS better than bank savings for income?

Yes, 7.4% vs 3% is significant. But MIS has 5-year lock-in while bank savings is liquid.

Related Calculators

SIP Calculator • Mutual Fund Returns • Wealth Calculator

Disclaimer

This calculator is provided for informational purposes only. It is not financial, investment, tax, or professional advice. Results are estimates based on the assumptions and inputs you provide. Always consult with a qualified financial advisor or tax professional before making any financial decisions. Past performance is not a guarantee of future results.

Sources & References

The figures, formulas, and guidance behind this Post Office MIS Calculator India draw on authoritative primary sources. For verification and further reading:

• Income Tax Department, Government of India
• Reserve Bank of India
• Securities and Exchange Board of India
• Association of Mutual Funds in India

Frequently Asked Questions