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Chit Fund Interest and Returns Calculator in Excel

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%

 

 

Excel Sheet Calculator:

 

Other useful references:

Chit Funds in India

 

Source: How Chit Funds works and What are Chit Funds

0 thoughts on “Chit Fund Interest and Returns Calculator in Excel

  1. 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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