Free POMIS calculator. Estimate monthly interest income, after-tax returns, and reinvestment growth from India Post Office MIS investments.
The Post Office Monthly Income Scheme (POMIS) Calculator estimates your guaranteed monthly interest income from India Post's MIS investment. Enter your investment amount, current interest rate, and tax bracket to see gross and after-tax monthly income, maturity value, and how reinvesting the monthly payout can grow your wealth.
The Post Office MIS is one of India's most popular fixed-income investments, offering guaranteed monthly payouts backed by the Government of India. With the current rate at 7.4% per annum (Q1 FY25), it provides predictable income for retirees, senior citizens, and conservative investors. The maximum investment is ₹9 lakh for single accounts and ₹15 lakh for joint accounts.
The investment comparison table shows monthly income across different investment amounts, while the reinvestment scenario demonstrates how systematically reinvesting monthly payouts at an assumed rate can significantly boost total returns over the 5-year tenure. It is useful when comparing POMIS to bank FDs, recurring deposits, or other conservative income products because the monthly payout structure makes the cash flow easy to forecast. You can also use it to estimate the after-tax value of the interest if you fall into a higher slab or want to plan around TDS. The example illustrates a single investment case, but the same logic applies across the allowed account limits and different tax assumptions. Check the example with realistic values before reporting.
POMIS is ideal for investors seeking guaranteed monthly income. This calculator shows exact monthly payouts, after-tax returns based on your tax bracket, and the compounding benefit of reinvesting monthly income — essential for retirement income planning in India. It also gives a clear way to compare safety and liquidity trade-offs before choosing a fixed-income option.
Monthly Interest = (Investment × Annual Rate) ÷ 12 Annual Interest = Investment × Rate Total Interest = Annual Interest × Tenure Maturity Value = Investment + Total Interest Effective Rate = (Annual Interest × (1 − Tax Rate)) ÷ Investment × 100
Result: Monthly income: ₹3,083 (₹2,467 after tax)
Annual interest: ₹37,000. Monthly gross: ₹3,083. After 20% tax: ₹2,467/month. Total interest over 5 years: ₹1,85,000. Maturity: ₹6,85,000.
POMIS typically offers 0.25-0.75% higher interest than comparable bank FDs, with the added benefit of government backing. A ₹5 lakh POMIS at 7.4% earns ₹3,083/month, while a bank FD at 6.8% would earn ₹2,833 — a ₹250/month difference. Over 5 years, that's ₹15,000 extra income.
Interest from POMIS is taxable, but strategic planning can minimize impact. Senior citizens get ₹50,000 TDS exemption (vs ₹40,000 for others). If total income is below ₹5 lakh, no tax is owed. Spreading investments across multiple family members can optimize tax brackets.
Simply receiving ₹3,083/month from a ₹5 lakh POMIS generates ₹1,85,000 over 5 years. But reinvesting that income at even 6% annually in a recurring deposit or mutual fund can generate an additional ₹15,000-20,000 in compound interest — turning passive income into active wealth building.
As of Q1 FY2025, the Post Office MIS rate is 7.4% per annum, paid monthly. The government reviews and sets the rate quarterly.
₹9 lakh for a single account and ₹15 lakh for a joint account (effective FY2023-24). The minimum is ₹1,000 in multiples of ₹1,000.
Yes, interest earned is fully taxable as "Income from Other Sources." TDS is deducted at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if total income is below taxable limits.
Premature withdrawal is allowed after 1 year with a penalty of 2% (if before 3 years) or 1% (after 3 years). No withdrawal is permitted in the first year.
The principal amount is returned in full. If not withdrawn, the account can be renewed for another 5-year term at the prevailing rate. That means the account does not disappear automatically, but your renewal terms will follow whatever rate applies at the time.
Yes. POMIS is backed by the Government of India, making it virtually risk-free. It is one of the safest investment options in India, though returns are moderate compared to market-linked instruments.