Post Office MIS Calculator

Output:
Monthly Income Over Time

Post Office MIS Calculator – Calculate Your Monthly Income

The Post Office Monthly Income Scheme (MIS) is a government-backed savings plan that provides guaranteed monthly income. Our Post Office MIS Calculator helps you estimate your monthly interest earnings based on your investment amount and current interest rate.

Use this tool to plan your fixed-income investment effectively and ensure financial stability.

What is a Post Office MIS Calculator?

The Post Office MIS Calculator is an online tool designed to help investors determine their monthly income from the Monthly Income Scheme. By entering:

  • Investment amount
  • Applicable MIS interest rate
  • Investment tenure (5 years)

The calculator provides an estimate of the monthly interest payout.

How to Calculate Monthly Interest in Post Office MIS?

The interest for the Post Office MIS is calculated using this formula:

Monthly Interest = (P × r) ÷ 12

Where:

  • P = Investment Amount
  • r = Annual Interest Rate (Currently 7.4% per annum for 2024)
  • 12 = Number of months in a year

Since the interest is paid out monthly, there is no compounding.

Example of Post Office MIS Calculation

Suppose you invest ₹9,00,000 in the Post Office MIS at an interest rate of 7.4% per annum.

Step-by-Step Calculation:

  • Annual Interest = ₹9,00,000 × 7.4% = ₹66,600
  • Monthly Interest = ₹66,600 ÷ 12 = ₹5,550

Final Monthly Payout = ₹5,550

Benefits of Investing in Post Office MIS

  • Guaranteed Income: Fixed monthly interest payouts ensure stable earnings.
  • Government-Backed: Risk-free investment with assured returns.
  • Affordable Investment: Minimum investment starts at ₹1,000, and the maximum is ₹9,00,000 for joint accounts.
  • Flexible Withdrawal: Allows premature withdrawal after 1 year with minimal penalties.
  • No Market Risk: Unlike stocks or mutual funds, MIS provides assured returns.

How to Use the Post Office MIS Calculator?

  1. Enter your investment amount.
  2. Select the current MIS interest rate.
  3. The tenure is fixed at 5 years.
  4. Click "Calculate" to see your monthly interest payout.

Frequently Asked Questions (FAQs)

The current Post Office MIS interest rate is 7.4% per annum (as of 2024). The rates are revised quarterly by the government.

Yes, the interest earned is taxable as per your income tax slab. However, there is no TDS deduction.

Yes, premature withdrawal is allowed after 1 year with a penalty. A 2% penalty applies if withdrawn between 1-3 years, and 1% if withdrawn between 3-5 years.

No, Non-Resident Indians (NRIs) are not eligible to invest in the Post Office Monthly Income Scheme.

Conclusion

The Post Office MIS Calculator helps investors estimate their monthly income, ensuring a financially stable future. With guaranteed returns and government security, it is an ideal choice for retirees and risk-averse investors.

Start your Post Office MIS investment today and enjoy a steady income!