Secrets of Post Office Monthly Income Scheme Calculator

Although mutual funds and stock market investments have a high return rate, they also come with higher risks. One miscalculation and you can lose a lot of your investment money, which might take you tens of years to recover. It’s only natural that most Indians are avoiding these investment options and looking for something that will allow them to grow their money steadily with almost zero risk. Post office monthly income scheme or POMIS is one such government-backed investment option that will enable you to grow your money at a steady pace. But how much can it help you earn exactly? To understand that, you need a post office monthly income scheme calculator. In this article, we will show you what the POMIS scheme is and uncover the secrets of the post office MIS calculator. Let’s dig in.

What is the Post Office Monthly Income Scheme?

The Indian post office has a wide range of investment schemes, and the post office monthly income scheme, or POMIS, is one of them. This central government-backed monthly income scheme allows you to invest a certain amount of money in it, and you can receive a particular amount of money in return as interest against your invested money. The amount of monthly return can be easily calculated before you make the investment using a post office MIS calculator.

This investment scheme is perfect for those who are looking for a low-risk investment option that provides a fixed monthly return. Just make sure you fulfil the eligibility criteria before visiting your nearby post office.

Post Office MIS Interest Rates

As we have mentioned before, the POMIS scheme ensures a monthly return against the money you have invested. And the return is generated thanks to the predetermined annual interest rates that generate and deposit a fixed amount every month to your POMIS account.

POMIS interest rates are determined by the Ministry of Finance of the central government of India. This interest rate is updated every quarter by the Ministry, and the current interest rate is 6.70% per year w.e.f. 1st October 2022.

How Can the Post Office MIS Calculator Help You?

Sure, POMIS is an excellent option to invest your surplus money. But you still need to make proper financial plans before you invest even a single penny in minimizing the chances of future financial troubles. And to plan things faster and more accurately, you need to use the post office MIS interest rate calculator. Now, let’s see how this calculator can help you.

  • Financial Planning: The calculator gives you fast and accurate estimations of the total monthly return against your investment. Thanks to that, you can compare the data you receive with other investment schemes to see which options fit your immediate or long-term financial requirements perfectly. It will help you make a solid budget, tinker with the financial plans, and be ready for possible emergencies.
  • Easy to Use: The post office MIS scheme calculator is relatively easy to use. You just need to enter the total investment amount and the current POMIS interest rate to get the monthly income estimates within a blink of an eye.
  • It Saves Time: No matter how easy the interest calculation is, doing tens of those calculations manually still takes quite a lot of time. The calculator can do all these calculations within seconds, saving you hours of your time.
  • It’s Accurate: Manual calculations may contain errors that can become a severe threat to your financial planning. POMIS calculators are operated by computers, giving accurate results even after thousands of calculations.

Formula Used by the Post Office MIS Calculators

Every POMIS estimating calculator follows a specific formula that allows it to come up with an accurate estimation of the monthly interest amount. Here’s the formula:

I = (A * R) / 12


I = Monthly Income

A = Total Investment Amount

R = Annual Interest Rate in Decimal Figure

Now, let’s say you are planning to invest Rs. 3 lakh in the post office MIS scheme, and the annual interest rate is 6.7%.


A = 3,00,000

R = 6.7/100 = 0.067

I = (3,00,000 * 0.067) / 12 = Rs. 1,675

So, you will receive Rs. 1,675 every month as your monthly return against the investment as long as the annual interest rate stays the same.

POMIS Features

Now, it’s time to take a look at some of the most prominent features of the post office’s monthly income scheme.

  • Regular Payments: In this scheme, you will receive the payment every single month without any miss. It gives you a much-needed sense of security as an investor.
  • The Lock-in Period: This investment plan comes with a mandatory lock-in period of 5 years. It means that you won’t be able to touch the money from your POMIS account under normal circumstances.
  • The Number of Accounts and Investment Limit: There are absolutely no restrictions on how many POMIS accounts you can hold. However, a single individual account can only hold up to Rs. 4.5 lakhs, while joint accounts can hold up to Rs. 9 lakhs. On the other hand, you need to invest at least Rs. 1,500 to be eligible to open a post office monthly income scheme account.
  • Auto Withdrawal of Interest: You, as an investor, can withdraw the monthly income from your POMIS account using either the electronic clearing system (ECS) or a post-dated check (PDS).
  • Low Risk: As a government-backed investment option, POMIS has zero investment risk, and you will receive your monthly interest on time.

Final Thoughts

People want a safe investment option that will help them grow their money at a faster rate while keeping the risk of losing money as low as possible. That’s why investment schemes like POMIS, which allow Indians to gain a steady monthly income on their investment with 0% risk, became widely popular. However, don’t jump into it right away without a proper plan. Use the post office monthly income scheme calculator to estimate the monthly return against the total money you have invested in creating a sound financial plan. The calculator’s fast and accurate estimations will help you make your investment plan quickly, allowing you to guard against possible financial pitfalls.

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