Post Office MIS Calculator – Monthly Income Scheme
IndiaWork out the monthly income from the Post Office Monthly Income Scheme, what you keep after income tax at your slab, what closing early would cost, and what the income builds up to if you pay it into a Post Office RD.
By Ramanathan · MIS rate last verified: October 10, 2026
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Example
₹9,00,000 in the Post Office Monthly Income Scheme at 7.4% pays ₹5,550 a month for 5 years, ₹3,33,000 in all, and the deposit comes back at the end. At the 30% tax slab you keep about ₹3,818 a month.
Year-by-year income
| Year | Income this year | Income so far | Value if paid into an RD |
|---|
Estimate only. The tax figure applies one slab to all the income and ignores surcharge. The RD column assumes each month's income goes into a recurring deposit at the current Post Office RD rate.
QUICK REFERENCE
Monthly income at 7.4%
What the Monthly Income Scheme pays every month at the current rate of 7.4%, and what is left after tax at the 30% slab. The deposit itself comes back after 5 years.
| Deposit | Monthly income | After tax, 30% slab | Income over 5 years |
|---|---|---|---|
| ₹1,00,000 | ₹617 | ₹425 | ₹37,000 |
| ₹2,00,000 | ₹1,233 | ₹848 | ₹74,000 |
| ₹5,00,000 | ₹3,083 | ₹2,121 | ₹1,85,000 |
| ₹9,00,000 (single limit) | ₹5,550 | ₹3,818 | ₹3,33,000 |
| ₹15,00,000 (joint limit) | ₹9,250 | ₹6,364 | ₹5,55,000 |
Monthly figures rounded to the rupee. Tax includes 4% cess and ignores surcharge.
HOW IT WORKS
How the Monthly Income Scheme pays you
The Post Office Monthly Income Scheme (MIS, sometimes POMIS) takes a lump sum and pays you interest on it every month for 5 years, then returns the deposit. The interest is simple: it is paid out, not added to the balance, so it does not compound inside the account.
The formula we use
Monthly income = P × r ÷ 12
Where: P = Amount deposited | r = Yearly rate
Paid every month for 5 years; the deposit comes back at maturity.
On the default example, ₹9,00,000 at 7.4%, that is ₹5,550 a month, ₹66,600 a year and ₹3,33,000 over the 5 years, with the full ₹9,00,000 returned at the end.
Rate, limits and who can open one
The government sets the MIS rate every quarter. For October–December 2026 it is 7.4%, unchanged under the notification of 30 September 2026, and the rate on the day you open the account stays fixed for its 5 years. You can deposit from ₹1,000 in multiples of ₹1,000, up to ₹9 lakh in a single account and ₹15 lakh in a joint account, limits raised from ₹4.5 lakh and ₹9 lakh in the 2023 Budget.
Tax: what you keep
The monthly income is added to your income and taxed at your slab rate, and, unlike NSC, the deposit qualifies for no tax deduction. At the 30% slab plus 4% cess, ₹1,732 of each ₹5,550 goes in tax, leaving ₹3,818 a month; over 5 years that is ₹1,03,896 of tax. If your total income is below the taxable limit, you keep the full amount.
MIS plus RD: make the income earn
Left in a savings account, the monthly income earns little. A common plan is to pay it straight into a Post Office recurring deposit. ₹5,550 a month into a 6.7% RD for 5 years builds up to ₹3,96,080, so with the deposit returned you end with ₹12,96,080. If you do not need the income at all, an NSC on the same ₹9 lakh matures at ₹13,04,130, slightly more, because its higher rate compounds for the whole term. The NSC vs MIS guide compares them in detail.
Closing early
You cannot close the account in its first year. After one year and before three, 2% of the deposit is deducted when you close it; after three years, 1%. On ₹9 lakh that is ₹18,000 or ₹9,000, so you get back ₹8,82,000 or ₹8,91,000. The monthly income already paid stays yours. That makes MIS more flexible than an NSC, which generally cannot be closed early at all.
QUESTIONS & ANSWERS
Post Office MIS calculator — frequently asked questions
Monthly income = deposit × yearly rate ÷ 12. It is simple interest, paid every month and not compounded, and your deposit comes back in full after 5 years. At 7.4%, ₹9,00,000 pays ₹5,550 a month and ₹15,00,000 in a joint account pays ₹9,250 a month.
7.4% a year, paid monthly, for October–December 2026. The government reviews it every quarter, but the rate on the day you open the account stays fixed for its whole 5-year term.
₹9 lakh in a single account and ₹15 lakh in a joint account, in multiples of ₹1,000 from a minimum of ₹1,000. The limits were raised from ₹4.5 lakh and ₹9 lakh in the 2023 Budget. At the maximums the income is ₹5,550 and ₹9,250 a month at 7.4%.
Yes. The monthly income is added to your income and taxed at your slab rate, and the deposit does not qualify for any deduction. At the 30% slab plus cess, ₹5,550 a month leaves about ₹3,818 after tax; with no taxable income you keep the full ₹5,550.
Not in the first year. After one year and before three, 2% of the deposit is deducted; after three years, 1%. On ₹9 lakh that is ₹18,000 or ₹9,000, so you get back ₹8,82,000 or ₹8,91,000. The monthly income already paid is yours to keep.
You pay the monthly MIS income into a Post Office recurring deposit, so the interest keeps earning instead of sitting idle. ₹5,550 a month into a 6.7% RD for 5 years builds up to ₹3,96,080, so with the ₹9 lakh deposit returned you end with ₹12,96,080. An NSC on the same ₹9 lakh would mature at ₹13,04,130.
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FURTHER READING
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