Post Office MIS Calculator (Monthly Income Scheme)
Monthly payout from the Post Office Monthly Income Scheme at 7.4% — single account up to ₹9 lakh, joint up to ₹15 lakh — with 5-year total and tax at your slab.
How it works
Monthly income = deposit × rate ÷ 12 (simple interest, paid out monthly); 5-year term
The Post Office Monthly Income Scheme converts a lump sum into a fixed monthly payout for five years, after which the principal is returned. Limits were raised in April 2023 to ₹9 lakh for a single account and ₹15 lakh for a joint account (up to three adults), and a person can hold both, so a couple can secure ₹24 lakh of MIS. Interest — 7.4% at present — is simple, not compounded, and paid on the same date each month into a linked savings account; many retirees pair it with SCSS for a higher blended return. Interest is taxable but there is no TDS and no 80C deduction. Premature closure is allowed after one year with a 2% deduction (1% after three years).
Worked example
₹9,00,000 single account at 7.4%: ₹5,550 a month, ₹66,600 a year, ₹3,33,000 over the term — around ₹4,400 a month after 20% tax.
Frequently asked questions
Can I open MIS for a child?
Yes, a guardian can open an account for a minor (or a person of unsound mind); the minor’s ₹9 lakh limit is separate from the guardian’s own.
What happens if I don’t withdraw the monthly interest?
It sits in the MIS account earning nothing until you collect it — link a savings account with auto-credit so it earns savings interest at least.
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Uses Indian income-tax rules for FY 2025-26 (AY 2026-27) as enacted in the Finance Act 2025, including 4% health and education cess. Scheme interest rates are those notified for the current quarter and change every quarter. Educational estimate, not tax advice.