ReckonBoxHow the POMIS calculator works
The Post Office Monthly Income Scheme is a 5-year deposit that pays a fixed monthly interest and returns your whole principal at the end. This calculator takes your deposit and the rate, then shows the monthly income you would receive, the total interest over the term, the payout per Rs 1 lakh, and what an early exit would cost. POMIS pays 7.4% a year for the current quarter, credited every month.
On the default numbers the scheme is easy to read. A Rs 5,00,000 deposit at 7.4% pays about Rs 3,083 every month, adds up to Rs 1,85,000 of interest over 5 years, and then hands back the full Rs 5,00,000. Nothing is reinvested, so the payout never changes from one month to the next.
The monthly income formula
POMIS monthly income is the deposit multiplied by the annual rate and divided by 12, written as monthly income = P x rate / 12. With P as your deposit, a Rs 5,00,000 account at 7.4% gives 5,00,000 times 0.074 divided by 12, which is about Rs 3,083 a month. The rate is simple, not compounded, so the same figure lands in your account every month for 60 months.
That flat structure is the part most calculators skip over. Because nothing compounds, the maturity value is not larger than what you put in; it is exactly your deposit, returned after the last monthly payout. The growth you might expect from a fixed deposit is not here, and in exchange you get a predictable cheque each month.
How much does 1 lakh give per month
Each Rs 1 lakh in POMIS pays about Rs 617 a month at 7.4%, since the monthly income scales straight with the deposit. Double the deposit and you double the monthly cheque. So Rs 2 lakh pays about Rs 1,233, Rs 5 lakh pays about Rs 3,083, and the Rs 9 lakh single-account ceiling pays about Rs 5,550 a month.
| Deposit | Monthly income | Total interest (5 yr) |
|---|---|---|
| Rs 1,00,000 | About Rs 617 | About Rs 37,000 |
| Rs 5,00,000 | About Rs 3,083 | About Rs 1,85,000 |
| Rs 9,00,000 (single max) | About Rs 5,550 | About Rs 3,33,000 |
| Rs 15,00,000 (joint max) | About Rs 9,250 | About Rs 5,55,000 |
Deposit limits and who can open one
A single POMIS account can hold up to Rs 9 lakh and a joint account up to Rs 15 lakh, with a minimum of Rs 1,000 in multiples of Rs 1,000. These caps apply across all the POMIS accounts you hold, and in a joint account the balance is treated as shared equally among the holders. Any resident adult can open one, a minor can hold one through a guardian, and NRIs cannot invest.
Retirees lean on POMIS for the steady payout, though there is no separate senior-citizen rate. Someone aged 60 or above who wants a higher rate usually weighs it against the Senior Citizen Savings Scheme, which pays more but is capped and age-restricted.
What an early exit costs
You cannot close a POMIS account in the first year, and closing later deducts a penalty from your deposit, not from the interest you have already drawn. Close between years 1 and 3 and 2% of the deposit is deducted; close between years 3 and 5 and the deduction is 1%. On a Rs 5,00,000 account that is Rs 10,000 or Rs 5,000 off the principal, and the calculator above lays out the figure for your own deposit.
The monthly income you collected before closing stays with you either way. So an early exit is really a question of whether the small penalty on the principal is worth freeing up the lump sum before the 5 years are up.
Making the monthly income grow
POMIS income sits idle unless you route it somewhere, so a common move is to feed the monthly payout into a post office recurring deposit. The RD pays 6.7% a year compounded quarterly for the current quarter, so the interest that POMIS pays flat can compound quietly on the side.
The POMIS account keeps your capital safe and pays a level monthly cheque, while the RD turns those cheques into a second pot that does grow. The lumpsum calculator projects a one-time investment at any assumed rate, and the NSC calculator covers the other 5-year post office certificate, which compounds instead of paying monthly.
Tax on POMIS interest
POMIS interest is fully taxable at your income tax slab as income from other sources, and the scheme does not qualify for any Section 80C deduction. No TDS is deducted at the post office, so the responsibility to declare the interest each year is yours. This is a real difference from NSC and PPF, which either save tax on the way in or exempt the interest.
At the 30% slab, the Rs 37,000 of annual interest on a Rs 5,00,000 account would carry roughly Rs 11,500 of tax including cess, which trims the effective return. The PPF calculator covers the tax-free long-term alternative for money you do not need as monthly income.
What this does not promise
The 7.4% rate is locked for the certificate you open, so your monthly income is fixed the day you invest, but the rate on new accounts is reviewed every quarter and may differ later. The premature-closure penalties and deposit limits follow the current post office rules, and those rules can change, so treat the figures here as a planning guide. POMIS rules and rates are set by the government, and this is not investment advice, so a qualified adviser can confirm how the scheme fits alongside your other income.
Frequently asked questions
What is a POMIS calculator? A POMIS calculator works out the fixed monthly income from a Post Office Monthly Income Scheme deposit using monthly income = deposit times the annual rate divided by 12. It also shows the total interest over the 5-year term, the payout per Rs 1 lakh, and the full deposit that is returned at maturity.
What is the current Post Office MIS interest rate? The Post Office Monthly Income Scheme rate is 7.4% per annum, payable monthly, and it has been held at 7.4% since 1 April 2024 across the recent quarters. The rate is fixed for your full 5-year term on the day you open the account, so a later change does not affect an existing deposit.
How much monthly income does 1 lakh give in Post Office MIS? A Rs 1,00,000 POMIS deposit pays about Rs 617 a month at 7.4%, since the monthly income is 1,00,000 times 7.4% divided by 12. A Rs 5,00,000 deposit pays about Rs 3,083 a month, and the Rs 9,00,000 single-account maximum pays about Rs 5,550 a month.
What is the maximum I can invest in POMIS? A single account can hold up to Rs 9 lakh and a joint account up to Rs 15 lakh, with a minimum of Rs 1,000 in multiples of Rs 1,000. These limits count across all your POMIS accounts, and the joint-account limit is shared equally among the holders.
Does POMIS interest compound? No. POMIS pays a flat monthly interest that is credited to you and not reinvested, so the payout is the same every month and the maturity value equals your original deposit. If you want the income to grow, you can reinvest the monthly payout into a separate post office recurring deposit.
What happens if I close POMIS early? You cannot close a POMIS account in the first year. Closing between years 1 and 3 deducts 2% of the deposit, and between years 3 and 5 deducts 1% of the deposit, while the monthly interest you have already received is kept. On a Rs 5,00,000 deposit that is a Rs 10,000 or Rs 5,000 penalty on the principal.
Is POMIS interest taxable and does it qualify for 80C? POMIS interest is fully taxable at your income tax slab as income from other sources, and no TDS is deducted, so you declare it yourself. The deposit does not qualify for a Section 80C deduction, unlike NSC or PPF.
Can senior citizens use POMIS? Yes, any resident adult can open a POMIS account, and it is popular with retirees for the steady monthly payout, but there is no separate senior-citizen POMIS rate. Seniors who want a higher rate often compare it with the Senior Citizen Savings Scheme, which pays more but is limited to those aged 60 and above.