What is the Post Office Monthly Income Scheme (POMIS)?
This calculator applies to India. The Post Office Monthly Income Scheme (POMIS) is a small-savings instrument offered by India Post in which you make a one-time lump-sum deposit and receive a fixed interest payout every month. The scheme currently has a 5-year tenure and the interest rate is set by the Government of India (around 7.4% p.a. as of recent revisions; always confirm the prevailing rate). At maturity your full principal is returned. Rates and account limits are subject to government revision.
How to use this calculator
Enter your investment amount, the applicable annual interest rate (%), and the tenure in years. The calculator instantly shows your fixed monthly income, the total interest you will earn over the full tenure, and the maturity value (which equals your original principal, returned at the end).
The formula explained
POMIS interest is simple, not compounded, and is paid out monthly. The monthly income is the annual interest divided into 12 equal payments:
$$\text{Monthly Income} = \frac{\text{Principal} \times \dfrac{\text{Annual Rate}}{100}}{12}$$
The total interest over the tenure is the monthly income multiplied by the number of months. Because the principal is returned at maturity, the maturity value equals Principal + Total Interest paid out along the way.
Worked example
Suppose you invest ₹9,00,000 at 7.4% per annum for 5 years. Annual interest = \(9{,}00{,}000 \times 0.074 = ₹66{,}600\). Monthly income = \(66{,}600 \div 12 = \textbf{₹5{,}550}\). Over 60 months you receive \(5{,}550 \times 60 = ₹3{,}33{,}000\) in interest, and your ₹9,00,000 principal is returned at maturity.
FAQ
What is the maximum I can invest? A single account allows up to ₹9 lakh and a joint account up to ₹15 lakh under current rules — verify limits with India Post.
Is the interest taxable? Yes, POMIS interest is taxable as per your income slab; there is no TDS, so you must declare it.
Can I withdraw early? Premature closure is allowed after one year with a penalty deducted from the principal; this calculator assumes the deposit is held for the full tenure.
