Calculator guide for ₹5,50,000
This page centres on ₹5,50,000 with the fixed assumptions shown in the calculator above. Results are pre-computed at build time for this exact amount.
Open the Post Office MIS calculator for live recalculation, charts, and to try other inputs without leaving the main tool.
What is the Post Office Monthly Income Scheme (POMIS) calculator?
The Post Office Monthly Income Scheme (POMIS) calculator projects the monthly interest payouts on your deposit. POMIS is a government-backed savings scheme offered by India Post, designed to provide a steady monthly income with absolute capital safety.
The scheme carries a fixed tenure of 5 years. You make a one-time lump-sum deposit, and the post office pays out a fixed interest amount every month. At the end of the 5-year lock-in, your entire principal is returned to you.
A POMIS deposit of ₹5,50,000 at the current rate of {rate}% p.a. yields a guaranteed monthly income of ₹2,03,500 for 5 years, with the principal of ₹5,50,000 returned intact at maturity (₹7,53,500 total payouts). Calculate other deposits on the Post Office MIS calculator.
How do Post Office MIS calculators work?
The mathematics of POMIS is simple interest payout. Since the interest is paid out monthly, there is no compounding. The annual interest is calculated on the principal and divided by 12.
Our calculator applies the official interest rate set by the government (updated quarterly) to project your monthly payouts. The single account deposit limit is capped at ₹9 Lakh, while joint accounts can deposit up to ₹15 Lakh.
I = ( P × r ) / 12
Where –
| I | Monthly interest payout |
|---|---|
| P | Principal deposit amount |
| r | Annual interest rate (as a decimal) |
Example: ₹9,00,000 at 7.4% p.a. → I = (9,00,000 × 0.074) / 12 = ₹5,550 per month
Worked example: Maximizing a single POMIS account
We trace depositing the maximum single limit of ₹9,00,000 in a Post Office Monthly Income Scheme (POMIS) account at a fixed interest rate of 7.4% p.a. First, convert the annual interest rate to a decimal: r = 0.074.
Plugging this into the monthly income formula: I = (9,00,000 × 0.074) / 12. This yields a guaranteed monthly interest payout of exactly ₹5,550. Over the 5-year lock-in period, you will receive 60 monthly payments totaling ₹3,33,000 in interest earnings.
At maturity, your original principal of ₹9,00,000 is returned to you intact. Unlike compounding deposits, the interest is paid out monthly, meaning your principal does not grow beyond the initial deposit.
The Friction Section: Tax Drag & Premature Penalties
A Post Office Monthly Income Scheme offers high capital safety, but features several operational friction points.
First, consider the tax drag. The monthly interest payouts are fully taxable at your income tax slab rate. There are no tax exemptions under Section 80C, meaning high-income investors face significant net return reduction.
Second, lack of inflation protection. Because the interest is paid out monthly rather than compounding, your principal remains static for 5 years while inflation reduces its real value.
Third, premature closure penalties. If you withdraw your deposit before 3 years, the post office deducts a 1.5% penalty from the principal. If you withdraw between 3 and 5 years, a 1% penalty is applied.
Our Take: Why POMIS is Good for Retirees, Bad for Savers
In our experience, POMIS is an excellent safe-haven product for retired individuals who need a steady, risk-free monthly income to meet regular living expenses. However, for young savers with active income, it is a poor allocation because the payout halts compounding growth.
If you do not need monthly cash payouts, we advise avoiding POMIS. Invest in compounding assets like fixed deposits, PPF, or mutual fund SIPs, where your interest is reinvested to create a larger compound corpus over time.
How to use this Post Office MIS calculator
Enter your principal deposit amount, set the expected annual interest rate (p.a.), and read the guaranteed monthly income and total interest earned. The calculator enforces the statutory limit of ₹9 Lakh for single accounts.
For compounding fixed deposits, try the FD calculator. For senior citizen premium rates, try the SCSS calculator.
Frequently asked questions
What is the maximum investment limit for Post Office MIS?
The maximum investment limit is ₹9 lakh for a single account and ₹15 lakh for a joint account. These limits are strictly enforced by India Post.
Is there any tax benefit on POMIS deposits?
No. POMIS does not offer any tax deduction on the deposit amount under Section 80C. Additionally, the monthly interest earned is fully taxable at your income tax slab rate.
What happens if I withdraw my money before 5 years?
Premature withdrawal is allowed after 1 year. A penalty of 1.5% is deducted from the principal if closed between 1 and 3 years, and a 1% penalty is deducted if closed between 3 and 5 years.
Common questions about ₹5,50,000
Is this page different from the main Post Office MIS calculator?
Yes. This URL fixes the scenario at ₹5,50,000 with the defaults shown above. The Post Office MIS calculator at /calculators/post-office-mis-calculator/ is the interactive hub for any amount and live updates.
Can I change the amount on this page?
Use the calculator widget above to adjust inputs; results stay illustrative until you open the Post Office MIS calculator via the Calculate button for full live recalculation.