Home > Financial > Chit Fund Interest and Returns Calculator

Chit Fund Interest and Returns Calculator

Total Chit Amount

50000

No. Of Chit members

20

No.of EMIs (once per every member i.e. 1 x no.of members)

20

EMI (Total Chit Amount/No.of Members or EMIs)

2500

Chit Organizer commission (5% of Chit amount every month)

2500

Current Bank Interest Rate for Regular FD (Annual)

9.25

 

 

Month Number

EMI

Overall EMI Till that Month

Bank interest Till Date

Overall EMI with interest Till that Month

 

1

2500

2500

19

2519

 

2

2500

5019

39

5058

 

3

2500

7558

58

7616

 

4

2500

10116

78

10194

 

5

2500

12694

98

12792

 

6

2500

15292

118

15410

 

7

2500

17910

138

18048

 

8

2500

20548

158

20706

 

9

2500

23206

179

23385

 

10

2500

25885

200

26085

 

11

2500

28585

220

28805

 

12

2500

31305

241

31546

 

13

2500

34046

262

34309

 

14

2500

36809

284

37093

 

15

2500

39593

305

39898

 

16

2500

42398

327

42725

 

17

2500

45225

349

45573

 

18

2500

48073

371

48444

 

19

2500

50944

393

51336

 

20

2500

53836

415

54251

           

Totals

18

50000

 

4251

 

 

Utilizing Chit fund to make more earnings

You take the chit fund in the Fourth month

4

In the Fourth month you take chit at bid amount of

3000

Amount you get on second month

47000

Monthly Interest if you deposit the amount in bank

362

No. of Months left in your Chit

16

Overall Bank interest you earn on the deposit you made of chit amount

5797

Your overall returns from Chits

52797

Say you have two commission chits occurred in overall chit cycle

2

Worth of benefit you earn from commission chits

5000

Chit organizer commission to be removed

2500

Overall benefit returns from chit

55297

Overall benefit returns from chit (without organizer commission)

57797

Overall benefit

7797

Overall % benefit

15.6%

 

 

Excel Sheet Calculator: 

 

Other useful references:

Chit Funds in India

 

Source: How Chit Funds works and What are Chit Funds

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Categories: Financial
  1. Rajendran
    May 8, 2012 at 1:52 PM | #1

    Fantastic explanation … Good job

    Rajendran

  2. July 2, 2012 at 11:06 PM | #2

    if i invest an amount of Rs.14000/- per month in a chit of 25 months. If i re-invest the commission also in subscribing new chits. How much amount i can pile up in 15 years

  3. davi
    September 16, 2012 at 11:54 AM | #3

    @ashwini Thats why above analysis is given :)

  4. bharath
    October 7, 2012 at 2:24 PM | #4

    I am having doubt in this. The bank interest rates will vary depends upon the duration. If we take the benchmark with bank interest rates and i am taking the bid in the last months of the fund, then i need to face the problems with this calculator.

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