How the Post Office Monthly Income Scheme Calculator works
The Post Office Monthly Income Scheme (POMIS) is a savings scheme offered by India Post that pays a fixed monthly income on a lump-sum deposit, with the original principal returned in full at the end of a fixed five-year term. This calculator applies the scheme's standard formula so you can see the monthly payout, total interest, and total return before you invest.
The formula
Monthly income is calculated directly from the annual interest rate notified for the deposit:
Monthly Income = (Principal × Annual Interest Rate) ÷ 12
The rate is fixed for the life of the deposit at whatever level applies when the account is opened — it does not change during the holding period, and it does not compound. Every month's payout is identical, the principal itself is untouched until maturity, and it is returned in full at that point.
Worked example
Deposit ₹9,00,000 (the maximum for a single account) at an annual rate of 7.4%. Monthly income = (₹9,00,000 × 7.4%) ÷ 12 = ₹5,550 per month. Over the full five-year term (60 months) that totals ₹3,33,000 in interest, and at maturity the original ₹9,00,000 principal is returned — a combined ₹12,33,000 received across the term.
Investment limits and account types
A single POMIS account can hold up to ₹9,00,000; a joint account, held by up to three people, can hold up to ₹15,00,000. Deposits must be at least ₹1,000 and in multiples of ₹1,000. Only one deposit is allowed per account — additional savings require opening a separate account.
Premature withdrawal
POMIS accounts cannot be closed in the first year. Closing between one and three years forfeits 2% of the deposit; closing between three and five years forfeits 1%. After five years the account matures automatically and the full principal is returned with no deduction. This calculator models the full-term, no-penalty case for whatever holding period you enter — apply the applicable deduction yourself if you are estimating an early closure.