Chit Fund Interest and Returns Calculator in Excel
Chit funds is a very widely used investment and loan lending system in India. In a chit fund, a group of people agrees on a Chit value per head along the duration to arrive at the EMI. Every month the Chit will be open for auction and people in the group will participate in the auction. This way whoever, is in need of money that month they will auction for high bid values. Here I’ve put in a quick Chit Fund Interest and Returns Calculator in Excel sheet that can be handy for anyone who is already taking part in Chit or would like to evaluate the Chit fund returns.
| 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% |
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6 thoughts on “Chit Fund Interest and Returns Calculator in Excel”
Fantastic explanation … Good job
Rajendran
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
@ashwini Thats why above analysis is given 🙂
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.
Good Explanation, But worst calculation.
In the Fourth month you take chit at bid amount of 3000. This is wrong. I have seen of of chits. This situation the amount is 8000. If I agree @ 3000 then dividend will be 25 rupees on that month (3000-2500 = 500/20), next will decrease, so total dividend is 20*25 = 500 rupees.
Hi Prasad,
It an example calculation and Rs. 3000 is an assumed figure and it can vary to any amount depending how far the member will bid for. Let me know if you would like to add any particular point to the example.
BTW, I didn’t use dividend in my example as it will be out of general chit terminology for beginners.
Thanks,
Govardhan