Post Office Monthly Income Scheme (POMIS) Calculator
Estimate monthly income, total interest, and maturity value under the Post Office Monthly Income Scheme.
What is POMIS Calculator?
A Post Office Monthly Income Scheme (POMIS) calculator calculates monthly interest pension earnings on 5-year sovereign-backed post office deposits.
Financial calculators are useful because they turn assumptions into numbers you can compare. Instead of guessing, you can test different values for amount, time horizon, expected rate, and goal requirements to understand how the final result changes before you commit.
How this calculator works
Monthly Interest Payout = (Deposit Amount × Annual Rate) / 12. The prevailing rate is 7.4% per annum, credited monthly to your savings account.
Worked example
Investing the maximum single account limit of ₹9,00,000 at 7.4% yields ₹5,550 monthly pension. A joint account with ₹15,00,000 yields ₹9,250 every month.
Most common mistakes people make
- Assuming POMIS qualifies for Section 80C deductions (POMIS deposits do NOT offer tax deductions).
- Forgetting that monthly interest received is fully taxable at your income tax slab rate.
- Premature closure before 1 year is prohibited; closure between 1 and 3 years incurs a 2% deduction, and after 3 years incurs a 1% deduction.
- Leaving monthly payouts idle in a 4% post office savings account instead of setting up a recurring deposit (RD) sweep.
- Exceeding statutory deposit limits: ₹9 lakh for individual accounts and ₹15 lakh for joint accounts.
Frequently asked questions
POMIS Calculator helps you estimate the likely result of a financial decision using standard formulas and the assumptions you enter for amount, rate, duration, and frequency.
The calculator applies the relevant financial formula to your inputs and shows a real-time estimate so you can compare different scenarios before making a decision.
It gives a practical estimate based on standard formulas and assumptions, but actual outcomes can vary with market performance, policy changes, fees, taxes, and changing personal circumstances.
Yes. These calculators are designed for quick planning and comparison, especially when you want to estimate future values, repayments, or coverage needs before locking in a financial choice.
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Disclaimer
POMIS is backed by the Government of India and offers sovereign capital security. Interest rates are reviewed quarterly by the Ministry of Finance.