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Post Office Monthly Income Scheme Calculator is a useful financial tool that helps investors estimate the monthly income they can earn from the Post Office Monthly Income Scheme (POMIS).
This scheme is a popular government-backed investment option for individuals seeking a safe, stable, and regular monthly income.
Before investing, understanding the exact returns is essential, and a POMIS Calculator makes this process simple, quick, and accurate.
In this article, we will explain what the Post Office Monthly Income Scheme Calculator is, how it works, its benefits, the scheme’s features, and why it is ideal for conservative investors and retirees.
Table of Contents
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a small savings scheme offered by India Post under the Government of India. It is designed to provide a fixed monthly income to investors while ensuring capital safety.
Key Features of POMIS
- Government-backed and low-risk investment
- Monthly interest payout
- Fixed interest rate (revised quarterly)
- 5-year maturity period
- Option to open individual or joint accounts
Because of its safety and steady income, POMIS is widely used by retirees, senior citizens, and conservative investors.
Eligibility Criteria for Post Office Monthly Income Scheme
Before using the calculator, it is important to know who can invest in POMIS.
- Resident Indian individuals
- Individuals aged 18 years or above
- Joint accounts allowed (up to 3 adults)
- NRIs and HUFs are not eligible
Taxation on POMIS Returns
Taxation is a crucial factor in estimating returns.
- Interest earned is fully taxable
- No TDS is deducted by the post office
- No tax deduction under Section 80C
The Post Office Monthly Income Scheme Calculator does not account for tax, so investors should calculate post-tax income separately.
What is a Post Office Monthly Income Scheme Calculator?
A Post Office Monthly Income Scheme Calculator is an online tool that helps investors calculate:
- Monthly interest income
- Total interest earned during the tenure
- Maturity amount at the end of 5 years
By entering the investment amount and interest rate, the calculator instantly shows expected returns without the need for complex manual calculations.
How Does the Post Office Monthly Income Scheme Calculator Work?
The POMIS Calculator works using a simple interest formula, as interest under this scheme is paid monthly and is not compounded.
To use the Post Office Monthly Income Scheme Calculator, you need to provide:
- Investment Amount
- Minimum: ₹1,000
- Maximum:
- ₹9 lakh for a single account
- ₹15 lakh for a joint account
- Interest Rate
- Set by the government and revised quarterly
- Example: 7.4% per annum (subject to change)
- Tenure
- Fixed at 5 years
Once these details are entered, the calculator instantly displays your monthly income.
Post Office Monthly Income Scheme Interest Formula
The calculator uses the following simple interest formula:
Monthly Interest = (Principal × Annual Interest Rate) / 12Example Calculation
- Investment Amount: ₹6,00,000
- Interest Rate: 7.4% per annum
Annual Interest = ₹6,00,000 × 7.4% = ₹44,400
Monthly Income = ₹44,400 ÷ 12 = ₹3,700
So, the investor will receive ₹3,700 per month.
The Post Office Monthly Income Scheme Calculator performs this calculation instantly.
Benefits Of The Post Office Monthly Income Scheme Calculator
- Guaranteed Monthly Income
- Safe and Government-Backed
- Simple and Easy to Invest
- Flexible Investment Amounts
- Fixed Tenure with Predictable Returns
Conclusion: Post Office Monthly Income Scheme Calculator
The Post Office Monthly Income Scheme Calculator is a valuable financial planning tool for investors seeking stable and predictable monthly income.
It simplifies return estimation, supports retirement planning, and helps make informed investment decisions. With the safety of government backing and the clarity provided by the calculator, POMIS remains a preferred choice for risk-averse investors.
By using a Post Office Monthly Income Scheme Calculator before investing, individuals can confidently plan their finances, manage expenses, and enjoy a steady income with peace of mind.
