Post Office Monthly Income Scheme Calculator

Interest rate

Principal amount

₹

Number of years

Monthly interest

₹

What Is Post Office Monthly Scheme?

The Post Office Monthly Income Scheme (POMIS) is a government-backed, low-risk investment option that offers a steady monthly income, making it ideal for those seeking secure returns. Managed by the Ministry of Finance, this scheme offers an interest rate of 7.4%, and is the highest-yielding scheme among various post office schemes.

Post Office Monthly Income Scheme Calculator Formula

The formula to calculate the interest received from a post office monthly income scheme is a simple one. Here is how you can calculate the monthly interest on your investment in POMIS:

POIMS monthly interest = (Amount Invested * Annual Rate of Interest)/12

Post Office Monthly Income Scheme Calculator Example

Let us consider that Mr. A has considered investing Rs 1,00,000 for a period of 5 years, where the scheme provides a current interest rate of 7.4%.

Adding these values to the formula given above:

Monthly Income = (1,00,000 × 7.4%) / 12 = 616.67

So, your monthly income from the investment would be ₹616.67.

How To Use ClearTax Post Office Monthly Scheme Calculator?

Visit ClearTax Post Office Monthly Income Scheme Calculator.
Input the investment amount

The calculator will display the monthly interest basis the values you shared,

Benefits Of Post Office Monthly Income Scheme Calculator

Following are the benefits of the Post Office Monthly Income Scheme Calculator:

Gain Future Insights: The POMIS calculator helps estimate future earnings, giving you a clear picture of monthly income or compounded amounts before investing.
Plan Your Investments: With insights on potential returns, you can plan and explore other investment options.
Take Calculated Risk: POMIS is risk-free, and calculating monthly interest helps you assess if you want to explore higher-return investments.

Frequently Asked Questions

How is POMIS interest calculated?

The POMIS interest is a calculator-based interest on the POMIS formula. The formula is:

POIMS monthly interest = Amount Invested * Annual Rate of Interest/12

What are the disadvantages of POMIS?

There are various disadvantages of the post office monthly income scheme. Some major disadvantages include fixed returns that fall under the taxation slab, limited liquidity, easily affected by inflation, and others.

Is POMIS taxable?

Yes, the interest earned on the post office monthly income scheme is taxable.

Which bank MIS rate is the best?

While different banks might offer varying interest rates on MIS, HDFC Bank is known to offer the best interest rates. However, the interest rates for MIS might change with time, and hence it cannot be said with surety as to which bank will offer the best MIS interest rate.