Post Office MIS Calculator

The Post Office Monthly Income Scheme (MIS) is a government-backed savings scheme designed for individuals seeking a stable and predictable monthly income. It is particularly popular among retirees and conservative investors who prefer fixed returns  Read more

What is a Post Office MIS Calculator?

A Post Office MIS Calculator is an online financial tool that calculates the monthly interest payout you can earn from investing in the Monthly Income Scheme.
The calculator determines:

• Monthly income
• Total interest earned over 5 years
• Total payout (principal + interest)

It simplifies the process of estimating returns without manual calculations.

What is the Post Office Monthly Income Scheme?

The Post Office Monthly Income Scheme is a small savings scheme offered by India Post. It provides:

• Fixed interest rate
• Guaranteed monthly income
• 5-year lock-in period
• Government-backed security

This scheme is ideal for individuals who want a regular monthly income instead of compounded returns.

How does the MIS Calculator work?

The MIS scheme pays simple interest monthly. The calculator uses the following formula:
Monthly Income = (Investment Amount × Annual Interest Rate) ÷ 12
Since interest is paid monthly, it is divided into 12 equal instalments.
The calculator also computes:
Total Interest = Monthly Income × 12 × 5
Total Payout = Principal + Total Interest

Example of MIS calculation

Suppose:
 
Investment Amount = ₹5,00,000
Interest Rate = 7.4% per annum
 
Tenure = 5 years
Monthly Income = (5,00,000 × 7.4%) ÷ 12
Monthly Income ≈ ₹3,083
 
Total Interest over 5 years ≈ ₹1,85,000
Total Payout ≈ ₹6,85,000
 
The calculator performs this instantly for any investment amount.

Investment limits in MIS

The scheme has defined limits:

• Maximum ₹9 lakh for a single account
• Maximum ₹15 lakh for joint account
• Minimum investment ₹1,000
• Investments must be in multiples of ₹1,000

These limits are subject to change as per government notifications.

How to use the Post Office MIS Calculator?

Using the calculator is simple:
Step 1: Enter the investment amount.
Step 2: Enter the applicable interest rate.
Step 3: Click Calculate.
The tool will display:
Monthly income

Total interest earned

Overall maturity amount

Who should use the MIS Calculator?

The MIS Calculator is ideal for:

• Retirees seeking regular income
• Individuals with surplus lump sum funds
• Conservative investors avoiding market risk
• Families planning predictable monthly cash flow

If your goal is a steady monthly income instead of long-term compounding, MIS can be a suitable option.

Benefits of using the MIS Calculator

Using an MIS Calculator provides:

• Instant and accurate monthly income estimates
• Clear understanding of cash flow
• Easy comparison with other fixed-income schemes
• Better retirement income planning
• No manual calculation errors

Important things to know about MIS

• The tenure is fixed at 5 years.
• Interest is paid monthly, not compounded.
• Interest earned is taxable as per your income tax slab.

Premature withdrawal is allowed after one year, subject to penalties.

Why you should calculate before investing

Many investors invest in MIS for predictable income, but calculating the exact monthly payout helps in:

• Planning household expenses
• Managing retirement cash flow
• Comparing with SCSS or FD options
• Assessing tax impact

Using the Post Office MIS Calculator ensures you know your returns before committing your funds.

Final thoughts

The Post Office Monthly Income Scheme is one of the safest investment options for individuals seeking a regular monthly income. Since the returns are fixed and government-backed, it provides financial stability and peace of mind.
Use our Post Office MIS Calculator to estimate your monthly payout and make informed investment decisions.