If you have a lump sum and want regular income from it, the Post Office Monthly Income Scheme calculator can help you estimate how much monthly interest you could receive. The calculation depends mainly on the amount deposited and the interest rate applicable to the scheme.
The Post Office Monthly Income Scheme, or MIS, has a five-year maturity period and pays interest every month. Before making an estimate, it is important to check the current interest rate, deposit limit and applicable tax rules.
What is the Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme is a small savings scheme designed for people who want regular interest income from a lump sum.
The maximum deposit is Rs. 9 lakh for a single account and Rs. 15 lakh for a joint account. The maturity period is five years, and interest is paid monthly.
The interest rate is set by the Government and reviewed from time to time. For the October to December 2026 quarter, the MIS interest rate is 7.4% per annum.
How does a Post Office MIS calculator work?
A Post Office MIS calculator uses the deposit amount and applicable interest rate to estimate the monthly interest.
For example, if you deposit Rs. 5 lakh at 7.4% per annum, the annual interest would be Rs. 37,000. This works out to about Rs. 3,083 per month.
Similarly, a Rs. 15 lakh deposit at the same rate would earn Rs. 1.11 lakh a year, or about Rs. 9,250 per month.
These figures are before tax. The actual rate used for the calculation should be the rate applicable to the relevant period.
Why should you check the current interest rate?
The interest rate affects the monthly income shown by the calculator. Small savings rates can be revised by the Government for different quarters, so using an old rate may give a different estimate.
For example, if you calculate the monthly income from Rs. 5 lakh using a rate of 7%, the result will be lower than the estimate based on the current 7.4% rate.
Checking the latest rate before calculating can therefore give you a more useful estimate.
How much can you deposit in MIS?
The current maximum deposit is Rs. 9 lakh in a single account and Rs. 15 lakh in a joint account. The minimum deposit is Rs. 1,000.
The deposit limit matters when using a calculator. For example, entering Rs. 20 lakh into a calculator may show the interest that amount could generate, but it does not mean that Rs. 20 lakh can be deposited into a single MIS account.
The calculation should therefore be based on an amount that follows the applicable account rules.
When is the MIS interest paid?
MIS interest is paid every month. India Post also provides arrangements through which the monthly interest can be transferred to a linked savings or bank account.
This makes MIS different from savings products where interest is retained and compounded until maturity.
For someone looking for regular cash flow from a lump sum, the monthly payout is an important part of the scheme.
Is MIS interest taxable?
The interest earned from MIS is taxable under the applicable income tax rules.
This means the amount shown by a Post Office MIS calculator is the gross monthly interest and not necessarily the amount that will remain after tax.
For example, if the calculator shows a monthly interest of Rs. 3,083, the actual amount available after considering tax may be different depending on the investor’s total income and applicable tax provisions.
Investors comparing MIS with the senior citizen scheme should also review the interest rates, eligibility criteria, payout frequency and tax treatment of each option before making a decision.
Tax should therefore be considered separately when estimating the income available from MIS.
Can you compare MIS with other savings schemes?
You can compare MIS with other small savings schemes, but the comparison should not be based only on the interest rate.
For example, the Senior Citizens Savings Scheme, or SCSS, is designed for eligible senior citizens and provides interest quarterly rather than monthly. For October to December 2026, SCSS carries an interest rate of 8.2%, compared with 7.4% for MIS.
MIS may be more relevant for someone who wants monthly interest, while another scheme may suit someone who has different income or investment requirements.
The investment limit, payout frequency, maturity period, eligibility and tax treatment should all be considered before choosing a scheme.
What should you check before using an MIS calculator?
Before calculating your expected monthly income, check:
- The amount you plan to deposit
- Whether the account is single or joint
- The current MIS interest rate
- The five-year maturity period
- How the monthly interest will be paid
- The applicable tax treatment
- The current deposit limits
These details can help you avoid using an outdated rate or an incorrect deposit amount.
Conclusion
A Post Office Monthly Income Scheme calculator can help estimate the monthly interest from an MIS deposit. At the current 7.4% annual interest rate, a Rs. 5 lakh deposit would generate about Rs. 3,083 per month, while a Rs. 15 lakh deposit would generate about Rs. 9,250 per month before tax.
The calculation is useful for understanding the income a deposit could generate, but the current interest rate, deposit limit and tax treatment should always be checked before making a financial decision.