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Chit Fund Calculator

Monthly Installment, Dividend & Effective Return

Dividend is the auction discount left after the foreman’s commission, shared equally among all members and reduces your monthly installment. Assumes a steady discount each month for illustration.

Monthly Installment

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Dividend / Member / Month
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Effective Installment
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If You Win In Month

Prize Amount Received
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Total Installments Paid
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Effective Annual Return
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How is the Effective Annual Return calculated?

If You Never Win

Prize Amount Received
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Total Dividend Received
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Total Installments Paid
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Net Outcome
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Without winning, your discounted installments are never returned as a lump sum — the return only comes from the dividend, and your capital funds the winners' prizes.

Month-wise Cashflow

MonthInstallmentDividendNet OutflowPrize

Frequently asked questions

How is the monthly installment calculated?
The chit value is divided equally among all members, so each member pays that share every month for the full tenure. The tenure is the number of months the chit runs (often equal to the number of members).
What does the effective annual return mean?
When you win, you receive the prize amount (chit value minus the discount) early while you keep paying smaller, dividend-adjusted installments. The effective return annualises that cashflow into a comparable yearly rate.