Monthly Income Scheme (MIS) Calculator
Use this calculator to estimate monthly income from a lump-sum investment, total payouts over time, and your maturity amount.
What is an MIS calculator?
An MIS calculator helps you estimate how much regular monthly income you can generate from a one-time investment. In personal finance, MIS usually refers to a Monthly Income Scheme, where your principal is invested and interest is paid out every month.
This is especially useful if your goal is income stability: retirees, conservative investors, or people planning monthly household cash flow often use this kind of tool before making a fixed-income investment decision.
How this MIS calculator works
Core assumptions
- You invest a lump sum amount today.
- Interest is calculated on the principal and paid monthly.
- Principal is returned at maturity.
- Tax is applied only to interest income.
Formula used
Monthly Income = Principal × (Annual Interest Rate ÷ 12)
Total Interest Payout = Monthly Income × Total Months
Maturity Amount = Principal
Total Value = Principal + Total Interest Payout
Quick example
Suppose you invest ₹10,00,000 at 7.4% annual interest for 5 years:
- Monthly Income ≈ ₹6,166.67
- Total Payout over 60 months ≈ ₹3,70,000
- Maturity principal ≈ ₹10,00,000
You can also enter your expected tax rate and a reinvestment return to see a more realistic long-term outcome.
Why this tool matters for planning
Many people focus only on headline interest rates. But in real life, what matters is usable monthly cash flow, after-tax returns, and opportunity cost. This calculator gives you all three viewpoints in one place:
- How much money arrives each month
- How much you keep after tax
- What happens if you reinvest payouts instead of spending them
MIS vs other income options
| Option | Income Predictability | Risk Level | Liquidity |
|---|---|---|---|
| Monthly Income Scheme (MIS) | High | Low to Moderate | Moderate (subject to lock-in rules) |
| Bank Fixed Deposit (with payout) | High | Low | Moderate (premature penalty possible) |
| Debt Mutual Fund + SWP | Medium | Moderate | Higher (market-linked) |
Tips to use this calculator better
1) Add realistic tax
If your interest is taxable, gross income can be misleading. Always check post-tax monthly cash flow.
2) Compare tenure options
Try 3-year, 5-year, and 10-year scenarios. This helps you understand your income horizon and reinvestment needs.
3) Test reinvestment cases
If you do not need the full payout monthly, reinvesting a part can materially improve final wealth.
Limitations of any MIS calculator
- Actual products may have changing rates over time.
- Premature withdrawal rules can reduce returns.
- Tax treatment depends on your jurisdiction and slab.
- Inflation can reduce real purchasing power of fixed payouts.
This calculator is for educational planning only and should not be treated as investment advice.
Frequently asked questions
Is MIS better than an FD?
It depends on rate, safety preference, and payout structure. Both are popular for predictable income. Compare after-tax returns and lock-in conditions.
Can I rely on MIS for retirement income?
It can be one part of a retirement plan, especially for stability. But diversification across debt, equity, and emergency liquidity is usually wiser.
What if interest rates change later?
Your future reinvestment options may change. Re-run calculations periodically and adjust your income strategy.