Post Office MIS Calculator — Know Your Monthly Income Before You Invest

The Post Office Monthly Income Scheme is one of the most searched small savings instruments in India, and rightly so. It is government-backed, risk-free, and pays out a fixed monthly income throughout the 5-year tenure. At maturity, your principal comes back in full. This MIS calculator helps you work out exactly how much monthly income a given investment will generate — so you can decide how much to deposit to meet your income goal.

Enter your investment amount, the current MIS interest rate, and whether it is a single or joint account. The calculator gives your monthly payout, annual interest income, total interest earned over 5 years, and the full maturity value.

Current MIS Interest Rate and Investment Limits (2025-26)

The Post Office MIS currently offers 7.4 percent per annum, paid monthly as simple interest. The interest is calculated on the principal, not compounded — so the monthly payout remains the same throughout the 5-year period.

Maximum investment is ₹9 lakh for a single account and ₹15 lakh for a joint account. A ₹9 lakh investment generates a fixed monthly income of ₹5,550. Two individuals with separate accounts can together invest ₹18 lakh, generating ₹11,100 per month between them.

Is Post Office MIS Interest Taxable?

Yes, the monthly interest from MIS is fully taxable as income from other sources at your applicable slab rate. TDS is not deducted at source, but you are required to declare this income in your ITR each year. This is an important distinction from PPF or SSY, where interest income is entirely tax-free.

For investors in the lower tax brackets — those with income below ₹7 lakh under the new regime — the effective post-tax return on MIS remains competitive with other safe investment options.

What Happens at Maturity?

At the end of 5 years, the MIS account matures and your full principal is returned to your post office savings account. You have the option to reinvest it in a fresh MIS account for another 5-year term at the interest rate prevailing at that time. Premature closure is allowed after one year, with a penalty of 1 percent of the deposit (2 years to 3 years) or 1 percent (after 3 years).

Who Benefits Most from Post Office MIS?

MIS is best suited for retirees and senior citizens who need a reliable monthly income stream without any market risk. It is also useful for anyone who has received a lump sum — retirement gratuity, property sale proceeds, or a large maturity payment — and wants to generate regular income while keeping the capital entirely safe. For building long-term wealth, MIS alone is not sufficient, but as a stable income component in a broader portfolio, it serves its purpose well.

Disclaimer: MIS interest rates are revised quarterly by the Ministry of Finance. Confirm the current rate at your post office before depositing.