Post Office Monthly Income Scheme - Monthly Payout, Total Interest, and 5Y Maturity

The post office monthly income scheme is a Government of India small-savings deposit run by India Post that pays a fixed monthly interest on a one-time lump sum for 5 years and returns the principal at maturity. The current POMIS rate is 7.4% per annum, with a minimum of Rs 1,000 and a maximum of Rs 9L (single), Rs 15L (joint), or Rs 3L (minor).

• • Estimate a steady monthly income from a lump sum: Convert a retirement corpus into a fixed monthly credit for 5 years at 7.4% pa.
• • Compare POMIS with a bank FD or Senior Citizen Savings Scheme: Run a single, joint, or minor deposit and compare the monthly payout against a bank FD or SCSS.

Think of POMIS as a 5-year annuity whose rate is set quarterly by the Ministry of Finance. The interest is paid out, not compounded inside the scheme, so what you do with the monthly credit is what really drives your effective return.

This post office monthly income scheme calculator applies the POMIS formula, the per-account cap, the premature-closure penalty, and an optional reinvestment projection so the monthly payout is a number you can act on.

If you are weighing the post office monthly income scheme against a longer-tenure government-backed product, PPF calculator shows the 15-year Public Provident Fund maturity that many retirees layer on top of a POMIS deposit.

The calculator applies the Government of India POMIS rule, caps the principal at the per-account investment limit, multiplies by the annual rate divided by 12 to get the monthly payout, scales the total interest by the chosen tenure, and then models a reinvestment future value if you supply a rate.

• Principal: Lump-sum POMIS deposit in multiples of Rs 1,000, capped at Rs 9L, Rs 15L, or Rs 3L.
• Annual POMIS Rate: Government of India small-savings rate for POMIS, reset quarterly. Default 7.4% pa for the current Apr-Jun 2026 quarter.
• Tenure: Full POMIS tenure is 5 years. Enter 1-4 to model premature closure and its 1-2% deduction.
• Payout Reinvestment Rate: Annual rate at which the monthly payouts are redeployed (RD, savings, FD). Set 0% to see payouts kept as cash.

The headline result is the monthly credit you can budget against. Total interest and net maturity value matter for tax planning because POMIS interest is fully taxable in the year it is paid but the principal is returned untouched. If you set tenure to 1-4 years the calculator applies the premature-closure rule: 2% deduction if you close after 1 year but before 3, and 1% if you close after 3 years but before 5.

According to India Post, the Post Office Monthly Income Scheme is a Government of India small-savings deposit that pays monthly interest equal to the principal times the current 7.4% per annum rate divided by 12, and the principal is returned in full after the 5-year tenure.

Since POMIS does not compound interest inside the scheme, the most common way to put the monthly payout back to work is a post office recurring deposit, and RD calculator shows the 5-year maturity a parallel monthly deposit would build.

Four Government of India rules drive almost every POMIS estimate: the per-account cap, the quarterly rate reset, the premature-closure penalty, and the post-maturity savings-account fallback.

These four rules explain why a 5-year POMIS deposit is not a one-decision product. The cap forces you to split a large corpus across accounts, the quarterly reset means last quarter's rate is not locked in for the next, the premature-closure rule is the cost of changing your mind early, and the post-maturity fallback decides what happens to the principal if you forget to act on maturity.

POMIS is the most common monthly-income product in a retiree stack, and Atal Pension Yojana calculator models the Government of India Atal Pension Yojana contributions and the lifetime pension they buy so you can see whether a pension overlay is worth the paperwork.

Run the calculator in five steps to get a POMIS estimate you can take to the post office or compare against an FD or SCSS.

1. 1 Pick the account type: Choose Single, Joint, or Minor. The calculator applies the matching cap of Rs 9L, Rs 15L, or Rs 3L and clamps the principal.
2. 2 Enter the investment amount in rupees: Type the lump sum in multiples of Rs 1,000. The minimum POMIS deposit is Rs 1,000.
3. 3 Confirm the POMIS interest rate: Leave the rate at 7.4% pa for the current Apr-Jun 2026 quarter, or overwrite it to model a future reset.
4. 4 Set the tenure and the reinvestment rate: Default tenure is 5 years. Drop it to 1-4 to model premature closure and the 1-2% deduction. Set the reinvestment rate to what an RD or FD would actually pay.
5. 5 Read the monthly payout and the net maturity: The right-hand panel shows the monthly credit, total interest, net maturity, reinvested payouts, and effective annualized return.

With Principal = Rs 9,00,000, Single account, 7.4%, 5 years, and 7.0% reinvestment, the calculator shows a Rs 5,550 monthly credit, Rs 3,33,000 of total interest, Rs 9,00,000 principal returned, and a 7.59% effective annualized return.

If you decide to use the POMIS monthly payout as the seed for a long-term equity SIP instead of an RD, SIP India calculator projects the corpus that a 5-year stepped SIP can build after the POMIS matures.

The calculator turns the Government of India POMIS rules into numbers you can act on, without needing to read the small-savings Gazette notification.

• • Get a defensible monthly-income estimate in seconds: Type the principal, pick the account type, and the calculator applies the 7.4% POMIS rate, the per-account cap, and the 5-year tenure to give a Rs 5,550 monthly credit on a Rs 9 lakh single-account deposit.
• • Compare POMIS, FD, and SCSS on the same form: Run a single-account POMIS, a senior-citizen SCSS, and a 5-year bank FD through similar inputs and see the monthly credit, total interest, and net maturity in the same units.
• • Test the premature-closure cost in advance: Shorten the tenure to 2 or 4 years and watch the net maturity value fall by the matching 2% or 1% deduction, so you know the price of an emergency exit before you open the account.

Most benefits come from making the POMIS rules explicit. Once they are inputs in a form, the decision becomes a comparison the user can run.

To set a clean baseline before you open the post office account, fixed deposit calculator shows the maturity a 5-year bank FD at the prevailing 5-year FD rate would produce on the same principal, so the 7.4% POMIS rate can be judged against it.

Four real-world factors can move the POMIS estimate well above or below the headline 7.4% number. The calculator lets you test them directly.

• • The calculator applies the central Government of India POMIS rules and ignores state-level small-savings variations. There are no state-level POMIS variants, but a few post office branches may offer marginally different service charges that are not modelled here.
• • The reinvestment projection assumes the user can sustain the same reinvestment rate for the full 5-year tenure. In practice an RD rate or a savings-account rate can move at the next reset.

Most POMIS disappointments come from misreading one of these factors. The most common is assuming the rate is locked for 5 years when it is reset quarterly, and the next is forgetting to redeem the maturity within 2 years and losing the 7.4% rate to the 4% post office savings-account rate.

According to India Post, premature closure of a Post Office Monthly Income Scheme account is allowed after 1 year, with a 2% deduction on the deposit if the account is closed between 1 and 3 years and a 1% deduction if closed between 3 and 5 years; unclaimed maturity proceeds continue to earn post office savings account interest for up to 2 years.

If you want a long-horizon, market-linked retirement product that can sit alongside a POMIS deposit, National Pension Scheme calculator shows the National Pension System corpus and annuity outcomes from regular Tier-1 contributions.