MIS scheme calculator for the post office monthly income scheme

MIS scheme calculator: the maths

MIS is simple interest paid monthly. The calculator multiplies your deposit by the yearly rate and divides by twelve:

Because interest is not added back to the deposit, the monthly figure stays exactly the same for all five years. That is what makes MIS easy to plan around.

Ready reckoner: monthly income for common deposits

Figures use 7.4% and are rounded to the nearest rupee. The post office pays the exact amount, so you may see a paisa or two of difference in the passbook.

Working backwards: deposit needed for a monthly target

Many people know the monthly sum they need, not the deposit. Divide the target by the rate per month:

• ₹2,000 a month needs about ₹3.25 lakh (₹2,000 × 12 ÷ 7.4%).
• ₹4,000 a month needs about ₹6.5 lakh.
• ₹8,000 a month needs about ₹13 lakh, which means a joint account.

Remember the deposit must be in multiples of ₹1,000, so round up.

Using the calculator for a senior citizen

The MIS rate is the same at every age. Anyone past 60 usually does better in SCSS, paying 8.2% each quarter. Try the same amount on the SCSS calculator: on ₹9 lakh, SCSS pays ₹18,450 a quarter, or ₹6,150 a month on average, against ₹5,550 a month from MIS.

A common plan for retired couples is SCSS first, up to ₹30 lakh each, then MIS for any extra money that needs to pay out monthly. More on that in the post office pension options guide.

What the calculator does not show

• Tax: MIS interest is taxable at your slab. At 20% tax, ₹5,550 a month leaves ₹4,440 in hand.
• Early closure: closing between years one and three costs 2% of the deposit; between three and five, 1%.
• Reinvesting the payout: if the monthly interest goes into an RD, it grows further. Use the RD calculator with the monthly figure to see how much.

MIS calculator vs FD calculator: why the totals differ

An FD calculator usually shows a single maturity number because interest is added back or paid yearly. MIS pays you every month, so there is nothing to compound inside the scheme. Comparing the two by total interest over five years:

The FD pays a little more in total but only once a year. If you need the money monthly, MIS is the better fit. See the post office FD calculator to compare your own amount.

Other names for the same calculator

You may have searched for an MIS scheme calculator, a monthly income scheme in post office calculator or a post office fixed deposit monthly income scheme calculator. They all mean this tool. The last name comes from people who think of MIS as a fixed deposit that pays monthly, which is a fair way to picture it: one deposit, fixed rate, fixed term, and the interest sent to you each month instead of once a year.

The MIS scheme in post office calculator above is built only for MIS rules. For a 1, 2, 3 or 5 year time deposit that pays yearly, use the FD calculator instead, because the interest maths is different.