Post Office MIS Calculator — Monthly Income Scheme Payout 2026-27

Post Office MIS Calculator — Monthly Income Scheme Payout

How Post Office MIS works

Post Office Monthly Income Scheme (MIS) is a government-backed, lump-sum savings scheme that generates a fixed monthly income. It is designed for investors who need predictable cash flow — typically retirees, homemakers, or anyone with a lump sum who prefers guaranteed monthly interest over market-linked returns.

Key mechanics:

Minimum deposit: ₹1,000 (in multiples of ₹100).
Maximum deposit: ₹9,00,000 per single account; ₹15,00,000 for joint accounts (individual cap still ₹9L).
Term: 5 years. Renewable on maturity.
Interest: 7.4% p.a. (Q1 FY 2026-27), paid monthly — no compounding on principal.
Principal at maturity: Returned in full (no deduction unless prematurely closed).
Sovereign backing: Government of India guarantee.

How monthly payout is calculated

MIS uses simple interest — the principal does not compound:

Monthly payout = (Principal × Annual rate) ÷ 12

At 7.4% p.a. on ₹9,00,000: Monthly payout = (9,00,000 × 7.4%) ÷ 12 = ₹5,550/month

Over 5 years, the total interest earned = ₹5,550 × 60 = ₹3,33,000.

Deposit limits

Account type	Maximum deposit
Single account	₹9,00,000
Joint account (2 or 3 adults)	₹15,00,000 combined
Individual limit (all accounts)	₹9,00,000 (their share of joint + single)

Premature closure penalty

Time since opening	Penalty
Less than 1 year	Not permitted
1 to 3 years	2% of principal deducted
3 to 5 years	1% of principal deducted
At 5-year maturity	Full principal returned, no penalty

Tax treatment

Item	Rule
Monthly interest received	Taxable as ‘Income from Other Sources’
TDS by India Post	Not deducted
Section 80C deduction	Not available
Principal at maturity	Not taxable

Compounding your MIS payout

MIS pays simple interest — the ₹5,550/month is not automatically reinvested. To compound your returns, you can open a Post Office RD and deposit your monthly MIS payout:

MIS payout at ₹9L: ₹5,550/month
Invest this ₹5,550/month into Post Office RD at 6.7%: builds a parallel compounded corpus
5-year RD maturity on ₹5,550/month: approximately ₹3.89 lakh (vs ₹3.33 lakh from simple MIS interest)

Use our Post Office RD calculator to project this side corpus.

Post Office MIS vs Senior Citizens Savings Scheme (SCSS)

Feature	Post Office MIS	SCSS
Eligible investors	All adults	60+ (or 55+ for VRS retirees)
Rate (Q1 FY 2026-27)	7.4% p.a.	8.2% p.a.
Payout frequency	Monthly	Quarterly
Maximum deposit	₹9L (single)	₹30L
80C deduction	No	Yes
Lock-in (no penalty)	5 years	5 years
Extension	Renewable	3-year extension allowed

If you are 60+, SCSS is generally more attractive than MIS due to the higher rate, larger cap, and 80C benefit.

Post Office MIS vs Systematic Withdrawal Plan (SWP)

Feature	Post Office MIS	SWP (mutual fund)
Returns	Guaranteed 7.4%	Market-linked (not guaranteed)
Principal safety	Sovereign guarantee	Subject to NAV fluctuation
Tax on payout	As regular income	Capital gains (can be lower tax)
Flexibility	Fixed monthly amount	Adjustable withdrawal amount
Suitable for	Risk-averse income seekers	Investors comfortable with market risk

For risk-averse investors, MIS is the safer choice. For those seeking potentially higher post-tax income with some market exposure, a debt mutual fund SWP may offer better tax efficiency (long-term capital gains taxed at slab vs regular income). Use our SWP calculator to compare.

Bridges

Post Office SCSS calculator — senior citizens savings scheme with higher 8.2% rate and quarterly payouts
Post Office FD calculator — lump sum growth alternative with compounding
SWP calculator — systematic withdrawal from mutual fund corpus for market-linked monthly income
Post Office RD calculator — reinvest your MIS monthly payout to compound returns

Frequently Asked Questions

What are the deposit limits for Post Office MIS?

The Post Office Monthly Income Scheme (MIS) has the following deposit limits for Q1 FY 2026-27: Single account — maximum ₹9,00,000; Joint account (2 or 3 adults) — maximum ₹15,00,000 (combined across all joint MIS accounts). Each depositor's share in a joint account is counted for their individual limit. Note: if you hold both a single and a joint account, the single-account limit of ₹9L applies to the individual, so the maximum total MIS exposure per person is ₹9L (their share from single + joint combined).

How is the monthly payout transferred to my account?

The monthly interest is credited directly to your linked Post Office savings account (POSB) or bank account via ECS/NACH mandate. The payout is transferred on a fixed date each month based on the date of account opening. You do not need to visit the post office to collect the monthly interest — it is automatically credited. If no bank account is linked, the interest can be collected from the post office.

Can I withdraw from Post Office MIS before 5 years?

Yes, premature closure of a Post Office MIS account is permitted subject to the following penalties: (1) closure within 1 year from opening — not permitted (deposit is locked for the first year); (2) closure between 1 year and 3 years — 2% of the principal is deducted as a penalty; (3) closure after 3 years but before 5 years — 1% of the principal is deducted. The principal (net of penalty) is returned along with any interest already paid monthly. There is no penalty on normal maturity at 5 years.

Is Post Office MIS interest taxable?

Yes. Interest received from Post Office MIS is fully taxable as 'Income from Other Sources' under the Income Tax Act, 1961. TDS is not deducted by India Post on MIS payouts, so you must include the monthly interest in your income tax return for the relevant financial year. The principal returned at maturity is not taxed. There is no Section 80C deduction on MIS investments.

Who should prefer MIS over SCSS for monthly income?

Post Office MIS is open to all adult residents of India regardless of age, while SCSS is restricted to individuals aged 60 and above (or 55+ for VRS/superannuation retirees). If you are below 60 and want guaranteed monthly income backed by the government, MIS is the primary option. If you are 60+, SCSS is generally more attractive: it offers a higher rate (8.2% vs 7.4%), a higher cap (₹30L vs ₹9L single), and the initial deposit qualifies for Section 80C deduction — MIS does not.

Can I open multiple Post Office MIS accounts?

Yes. An individual can open multiple MIS accounts — a single account in their own name and joint accounts with other family members. However, the combined individual limit across all MIS accounts (single and the individual's share of joint) is capped at ₹9,00,000. Opening multiple accounts beyond this limit is not permitted under the scheme rules.

Compliance disclaimer

Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. Past performance is not indicative of future returns. The information on this page is for educational purposes only and does not constitute investment advice. Distribution by Jayesh Jain (AMFI ARN-286359). No advisory fees are charged.