Post Office MIS Calculator

₹1000₹15,00,000
1%12%
Time Period
5 Yr (fixed)

Monthly Income

₹1,542

₹92,500 in total over 5 years. Your ₹2,50,000 is paid back at the end.

What is Post Office MIS?

The Post Office Monthly Income Scheme (MIS) is a government-backed savings scheme that pays you a fixed income every month. You deposit a lump sum once, and the interest on it is paid into your savings account every month for 5 years.

At the end of the 5 years, you get your full deposit back. Because the interest is paid out every month rather than added to the deposit, it doesn’t compound.

MIS suits retirees and anyone who wants a safe, regular monthly income from their savings.

Good to know

You can invest up to ₹9,00,000 in a single account, or up to ₹15,00,000 in a joint account with up to three adults.

What is a Post Office MIS Calculator?

A Post Office MIS calculator works out the monthly income you will receive from your deposit, and the total interest you will earn over 5 years, based on the amount you invest and the rate of interest.

Why you should use a Post Office MIS Calculator?

  • Plan your monthly budget: Know exactly how much income your deposit will give you every month.
  • Choose how much to invest: Work out how much you need to deposit for the monthly income you want.
  • Compare with other options: Compare the income with fixed deposits or the Senior Citizens’ Savings Scheme.

How Does a Post Office MIS Calculator Work?

The calculator works on the following inputs:

  • Amount Invested: The lump sum you deposit, from ₹1,000.
  • Rate of Interest: The yearly rate, currently 7.4%.
  • Time Period: Always 5 years for MIS.

The calculator relies on the following formula:

Monthly Income = Amount Invested × Rate of Interest ÷ 12 ÷ 100

Formula to Calculate MIS with an Example

Consider an example for a better understanding.

  • Amount Invested: ₹5,00,000
  • Rate of Interest: 7.4% per annum

Using the formula:

Monthly Income = 5,00,000 × 7.4 ÷ 12 ÷ 100

After calculation, you receive ₹3,083 every month, or ₹1,85,000 over 5 years. Your ₹5,00,000 is paid back at the end.

Things to keep in mind

  • Interest is taxable: The monthly income is added to your income and taxed at your slab rate. MIS deposits don’t qualify for Section 80C.
  • Early closure: You can’t close the account in the first year. Closing it in years 1 to 3 costs 2% of the deposit, and in years 3 to 5, 1%.
  • Reinvest the income: If you don’t need the income, you can invest it every month in a recurring deposit or SIP to make it grow.