Post Office Monthly
Income Scheme Calculator
Calculate your exact monthly interest payout from POMIS. Enter your investment amount and see your guaranteed monthly income instantly.
Your Investment Details
Your POMIS Returns
Year-wise Interest Payout Breakdown
| Year | Monthly Payout | Annual Interest | Cumulative Interest | Principal (Unchanged) |
|---|---|---|---|---|
| Click "Calculate Monthly Income" to see the breakdown | ||||
POMIS vs Other Monthly Income Options
| Scheme | Interest Rate | Payout Frequency | Tenure | Max Deposit | Backed By |
|---|---|---|---|---|---|
| POMIS | 7.4% p.a. | Monthly | 5 years | ₹9L / ₹15L | Govt. of India |
| SCSS | 8.2% p.a. | Quarterly | 5 years | ₹30L | Govt. of India |
| Bank FD | 6.5–7.5% p.a. | Monthly / Qtrly | Flexible | No limit | Bank |
| RBI Savings Bond | 8.05% p.a. | Half-yearly | 7 years | No limit | Govt. of India |
| Debt Mutual Fund (SWP) | Market-linked | Monthly (SWP) | Flexible | No limit | AMC |
Post Office Monthly Income Scheme Calculator: Calculate Your Monthly Returns Accurately
Most people who retire or receive a lump sum from a sale, inheritance, or pension settlement face the same question: where do I put this money so it gives me a reliable monthly income without any risk? The Post Office Monthly Income Scheme, commonly known as POMIS, is built exactly for this situation.
This government-backed scheme lets you deposit a fixed amount at a post office and receive simple interest every month, like clockwork. The principal stays intact, and you get it back at the end of five years. No market volatility, no hidden charges, no reinvestment complexity.
The POMIS calculator on this page helps you figure out exactly how much monthly income your deposit will generate, how much you will earn over the full tenure, and what your maturity amount will look like. Understanding these numbers before you invest helps you plan your monthly budget with confidence.
What Is the Post Office Monthly Income Scheme
The Post Office Monthly Income Scheme is a savings instrument run by India Post under the Ministry of Finance. The scheme falls under the National Small Savings Fund, which means the interest rates are set by the Government of India and reviewed quarterly. Because of this sovereign backing, the capital and returns are fully guaranteed.
You invest a minimum of Rs. 1,000 and earn simple interest at the rate applicable on the date of account opening. That interest gets credited to your post office savings account or linked bank account every month. At maturity after five years, you receive your entire principal back without any deduction.
The scheme accepts investments in multiples of Rs. 1,000. An individual can open multiple POMIS accounts, but the total deposit across all single-held accounts cannot exceed Rs. 9 lakh. For joint accounts, where two or three adults hold the account together, the ceiling is Rs. 15 lakh. The share of each joint holder is considered equal by default.
Who Should Invest in POMIS
POMIS works best for people who need a fixed, predictable monthly cash flow from a lump sum. Retired professionals who have received a gratuity or provident fund payout often use it as a steady income replacement. People who have sold property and want to park the proceeds safely while drawing monthly income are another strong fit.
The scheme also suits conservative investors who are uncomfortable with equity or market-linked products. Parents setting up a regular income for a dependent child, or individuals managing a corpus for an elderly parent, find POMIS practical because the process is simple and the outcomes are certain.
The scheme is not ideal for people who do not need immediate monthly income. If you can let your money compound, other instruments like PPF or NSC will likely give you better long-term returns because POMIS pays simple interest and returns only the principal at maturity. The reinvestment responsibility for monthly payouts lies entirely with you.
Current POMIS Interest Rate and Historical Trends
The current interest rate for POMIS in 2025-26 is 7.4 percent per annum. This rate has remained stable for several quarters and reflects the government's intent to keep the scheme attractive for risk-averse savers while keeping borrowing costs manageable.
Historically, POMIS rates have moved in line with the broader interest rate environment. During the low-rate period of 2020 to 2022, rates fell as low as 6.6 percent. From late 2022 onwards, the government steadily revised rates upward, reaching 7.4 percent from April 2023. The table below traces key rate changes over the past several years:
| Period | POMIS Interest Rate |
|---|---|
| April 2020 to March 2021 | 6.6% |
| April 2021 to September 2022 | 6.6% |
| October 2022 to December 2022 | 6.7% |
| January 2023 to March 2023 | 7.1% |
| April 2023 to June 2023 | 7.4% |
| July 2023 onwards (including 2025-26) | 7.4% |
An important point about the rate: once you open an account, the rate applicable on that date stays fixed for the entire five-year tenure. Even if the government revises rates downward in subsequent quarters, your account keeps earning at the original rate. This makes timing your investment during a high-rate period genuinely valuable.
How the POMIS Interest Calculation Works
The calculation is simpler than most financial products. POMIS pays simple interest, not compound interest. The interest is computed on the principal you deposited and does not grow on accumulated interest. Here is the exact formula:
Monthly Interest = (Principal Amount × Annual Interest Rate) ÷ 12
Take an example. Suppose you deposit Rs. 5,00,000 at an interest rate of 7.4 percent per annum.
Monthly interest = (5,00,000 × 7.4) ÷ (100 × 12) = Rs. 3,083 per month.
Over five years, you receive Rs. 3,083 every month for 60 months. Total interest earned = Rs. 3,083 × 60 = Rs. 1,85,000. At maturity, you also get back your principal of Rs. 5,00,000. So your total receipt over five years is Rs. 6,85,000 on an investment of Rs. 5,00,000.
This is the pure, unadjusted return without factoring in what you do with the monthly payouts. If you reinvest each monthly payout into a recurring deposit or another instrument, your effective total return will be higher.
How to Use the POMIS Calculator on This Page
The calculator above is designed to give you results in seconds. Start by selecting your account type, either single or joint. Single accounts have a maximum deposit limit of Rs. 9 lakh, while joint accounts go up to Rs. 15 lakh.
Next, move the investment amount slider or type in your deposit figure. The slider adjusts the maximum automatically based on your account type selection. Set the interest rate to the current applicable rate, which defaults to 7.4 percent. You can also adjust it upward or downward to simulate scenarios if rates change in the future.
The tenure slider defaults to five years, which is the standard POMIS lock-in. You can reduce it to model partial scenarios, though in practice the account runs for the full five-year term. Once you click Calculate Monthly Income, the results panel shows your monthly payout, annual interest, total interest across the tenure, and the maturity amount. The year-wise table below the calculator breaks down each year separately so you can see the cumulative interest growing over time.
Single Account vs Joint Account: Which Makes Sense
A single account is held by one person and allows a maximum of Rs. 9 lakh. A joint account can be held by two or three adults together and allows a maximum of Rs. 15 lakh in total. Any joint holder can operate the account and receive the monthly interest.
For a couple looking to maximize their combined POMIS income, one practical approach is to open one joint account for Rs. 15 lakh and two individual accounts for Rs. 9 lakh each. This allows a combined investment of Rs. 33 lakh between two people, generating a monthly income of approximately Rs. 20,350 at 7.4 percent.
In a joint account, the interest and principal at maturity are shared equally by default. This matters for tax calculation, as each co-holder must declare their proportionate share of interest in their individual income tax return.
Premature Closure Rules and Penalties
POMIS does allow premature closure, but there are penalties depending on how early you exit. You cannot close the account within the first year at all. This is a hard restriction with no exceptions.
If you close the account after one year but before three years, a penalty of one percent of the deposit amount is deducted from the principal. So if you deposited Rs. 5,00,000 and close after two years, you receive Rs. 4,95,000 as principal refund, plus all interest paid up to that point stays with you.
Closing after three years but before five years attracts a lower penalty of 0.5 percent of the deposit. On a Rs. 5,00,000 deposit, the penalty would be Rs. 2,500, and you would receive Rs. 4,97,500 as principal.
In the event of the account holder's death before maturity, the account can be closed by the nominee or legal heir without any penalty. The entire principal plus accrued interest up to the previous month is returned.
Tax Treatment of POMIS Returns
The investment you make in POMIS does not qualify for a tax deduction under Section 80C. This is one of the key differences between POMIS and tax-saving instruments like PPF or NSC. You invest from post-tax money.
The monthly interest received is fully taxable as income from other sources under the Income Tax Act, 1961. It gets added to your total income and taxed at your applicable slab rate. There is no TDS deducted at source on POMIS interest, which means you are responsible for declaring this income in your ITR and paying advance tax if the cumulative tax liability exceeds Rs. 10,000 in a year.
For senior citizens, the interest may be partially offset by the Section 80TTB deduction, which allows a deduction of up to Rs. 50,000 on interest income from specified instruments including post office deposits. This can meaningfully reduce the effective tax on POMIS returns for retired investors.
Planning around this tax impact is important. If your POMIS investment generates Rs. 5,000 per month, that is Rs. 60,000 annually added to your taxable income. At a 20 percent slab, the tax cost is Rs. 12,000 per year, reducing your effective net income. Factor this into your income planning when deciding the investment size.
POMIS for Retirement Planning: How It Fits the Picture
Retirement income planning works best when you combine guaranteed income sources with inflation-linked or growth-oriented ones. POMIS fits the guaranteed income layer. It gives you a fixed amount every month that you can count on to cover recurring expenses like utility bills, groceries, and household maintenance.
A retired couple with a combined POMIS investment of Rs. 18 lakh at 7.4 percent earns approximately Rs. 11,100 per month. That may not cover everything, but it meaningfully reduces the drawdown from other savings or pension income.
The five-year lock-in is actually an advantage in retirement planning. It keeps the discipline of not touching the principal during the investment period. At maturity, you reassess the rate environment and either re-invest in POMIS or shift to another instrument based on what is available at that time.
Combining POMIS with SCSS (Senior Citizen Savings Scheme) is a strategy many retirees follow. SCSS currently offers 8.2 percent per annum with quarterly payouts and a higher ceiling of Rs. 30 lakh. POMIS offers monthly payouts at 7.4 percent. Using both together gives you a blended monthly and quarterly income that smooths out cash flow needs across the month.
Extending the POMIS Account After Maturity
POMIS does not have an automatic extension option like SCSS. At the end of five years, the account matures and you need to submit a fresh application if you want to continue investing. This also means you can reassess at maturity and choose the current market rate for a fresh five-year cycle.
If you do not close or reinvest the account within two years of maturity, the deposit earns the post office savings account rate, which is currently 4 percent per annum. This is significantly lower than the POMIS rate, so prompt action at maturity is essential.
Mark the maturity date in your calendar and initiate reinvestment paperwork at least a month before. If you open the account online through the India Post Payments Bank portal, the maturity date and balance are visible in your dashboard, making tracking easier.
Opening a POMIS Account: Step-by-Step Process
You can open a POMIS account at any post office across India. The account opening process requires a valid KYC document such as Aadhaar or PAN card, a passport-sized photograph, and the deposit amount in cash for amounts under Rs. 1 lakh or by cheque or demand draft for larger amounts.
Start by visiting the nearest post office and requesting a POMIS application form. Fill in your personal details, nominee information, and account type preference. Submit the form along with your documents and the deposit amount. The post office will issue a passbook reflecting the account details and monthly payout schedule.
The monthly interest is automatically credited to your linked post office savings account. From there, you can transfer it to any bank account. You can also opt to receive it directly into a linked bank account by providing your bank account details at the time of opening the POMIS account.
Online account opening is now available through the India Post Payments Bank mobile app and website for existing IPPB account holders. This option is faster and eliminates the need for a branch visit, though you will still need your IPPB account and valid KYC details on file.
Common Mistakes to Avoid with POMIS
One of the most frequent mistakes is exceeding the deposit ceiling. If you accidentally deposit more than Rs. 9 lakh in a single account or Rs. 15 lakh in a joint account, the excess amount is returned without any interest. Staying within the limits is essential to get the full benefit of the scheme.
Another common error is not linking a bank account for monthly interest credit. If the interest keeps accumulating in the post office savings account without withdrawal, it earns only the savings account rate of 4 percent on the accumulated payouts rather than compounding at the POMIS rate. To benefit fully, withdraw or reinvest the monthly interest promptly.
Some investors underestimate the tax impact. Since no TDS is deducted, it is easy to forget to declare POMIS interest in the annual income tax return. This can lead to notices from the tax department. Maintain a record of total interest received each financial year and include it in the ITR under "Income from Other Sources".
Finally, do not treat POMIS as your only income source. The monthly payout at current rates may not keep pace with inflation over a five-year period. Factor in annual expense growth when deciding how much to allocate to POMIS versus growth-oriented instruments.
POMIS Monthly Payout Reference Table at 7.4%
| Investment Amount | Monthly Payout | Annual Interest | Total Interest (5 Yrs) |
|---|---|---|---|
| Rs. 1,00,000 | Rs. 617 | Rs. 7,400 | Rs. 37,000 |
| Rs. 2,00,000 | Rs. 1,233 | Rs. 14,800 | Rs. 74,000 |
| Rs. 3,00,000 | Rs. 1,850 | Rs. 22,200 | Rs. 1,11,000 |
| Rs. 5,00,000 | Rs. 3,083 | Rs. 37,000 | Rs. 1,85,000 |
| Rs. 7,50,000 | Rs. 4,625 | Rs. 55,500 | Rs. 2,77,500 |
| Rs. 9,00,000 | Rs. 5,550 | Rs. 66,600 | Rs. 3,33,000 |
| Rs. 15,00,000 (Joint) | Rs. 9,250 | Rs. 1,11,000 | Rs. 5,55,000 |
Frequently Asked Questions About POMIS
Disclaimer: This calculator is for informational and planning purposes only. Interest rates are set by the Government of India and reviewed quarterly. The current rate defaults to 7.4% p.a. for 2025-26. Verify the prevailing rate at your nearest post office or the India Post website before investing. This content does not constitute financial or investment advice.