How to Use the MIS Calculator

A Monthly Income Scheme (MIS) Calculator is a financial tool that helps investors estimate the fixed monthly income they can earn from a lump-sum investment at a set annual interest rate, along with the total maturity value at the end of the investment period.

This calculator is especially useful for individuals looking for stable and predictable returns, such as retirees or those who prefer low-risk investment options.

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How It Works:

The MIS calculator uses three inputs:

1. Investment Amount – the lump sum you invest (e.g., ₹100,000).
2. Annual Interest Rate (%) – the fixed interest rate applied annually (e.g., 7.5%).
3. Investment Duration (years) – how long you want to invest (e.g., 5 years).

Using these values, the calculator determines:

• Monthly Income – the amount you can expect to receive each month.
• Total Interest Earned – cumulative returns over the investment period.
• Maturity Value – your principal investment plus the total interest earned.

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Steps to Use:

1. Enter your investment amount (e.g., ₹100000).
2. Enter the annual interest rate (e.g., 7.5).
3. Enter the duration of the investment in years (e.g., 5).
4. Click “Calculate Monthly Income.”
5. Instantly view your monthly payout, total interest, and maturity value.

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Why Use an MIS Calculator?

• Clarity in planning: Know exactly how much you’ll earn each month.
• Retirement readiness: Helps retirees predict steady income flow.
• Comparison tool: Compare different interest rates and durations.
• Peace of mind: Provides certainty in financial planning.

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FAQ – MIS Calculator

Q1: What is an MIS investment?
A: MIS (Monthly Income Scheme) is a savings plan where you invest a lump sum and earn fixed monthly returns based on a predefined interest rate.

Q2: Is the interest compounded in MIS?
A: Typically, MIS schemes pay simple monthly interest without compounding. The calculator assumes simple interest for accuracy.

Q3: Can I reinvest my monthly payouts?
A: Yes, but reinvesting is outside the scope of this calculator. If you reinvest, your returns could be higher due to compounding.

Q4: Is MIS risk-free?
A: Many MIS schemes (such as government or post office schemes) are considered low-risk, but private financial institutions may carry more risk. Always check credibility.

Q5: Who benefits most from MIS?
A: Retirees, homemakers, and anyone seeking regular, fixed income with minimal risk exposure.

Q6: Can I withdraw early from an MIS scheme?
A: Some schemes allow early withdrawal with penalties. The calculator does not account for early exits.

Q7: How accurate is the MIS calculator?
A: It provides accurate results based on the inputs you provide. Actual returns may vary depending on specific scheme rules and taxation.