This calculator shows what a registered chit costs you or pays you, based on when you win the draw. Enter the chit size, the number of months, the foreman’s commission and the discounts you expect, and it gives your monthly instalments, the amount you receive, your total outflow and the yearly rate that works out to. For how chits work and how to check that one is registered, read our chit fund guide.
The calculator models the standard monthly-auction chit. A group of members pays the same base instalment every month, so the gross chit amount is collected each month. In every month except the last, members bid to take it, and the winner receives the gross chit amount minus the discount they bid (the net chit amount). The last month has no auction, and the remaining member receives the full amount. The discount is split in two: the foreman’s commission comes out first, and the rest is shared equally among all members as their share of discount, which reduces what each of them pays that month. Each member pays the base instalment minus that share, so the instalment is lowest when the discount is high.
The yearly rate is the monthly rate at which your payments and your one receipt balance out, converted to a yearly figure. If you win early, the rate is the cost of the money you borrowed. If you win in the last month, it is the return on your savings. If you win in the middle, you pay in for a while, receive the pot, and then keep paying, so no single rate describes it. In that case the calculator shows cash totals only.
Take a ₹1,00,000 chit with 20 members paying ₹5,000 a month for 20 months, a 5% commission (₹5,000) and a typical discount of 15% (₹15,000) in the other months. The ₹10,000 left after commission is shared by 20 members, so each pays ₹4,500 in months 1 to 19 and ₹5,000 in month 20.
| You win in | Your bid | You receive | You pay in total | Net | Yearly rate |
|---|---|---|---|---|---|
| Month 3 | 20% | ₹80,000 | ₹90,250 | ₹10,250 cost | about 21.9% (cost) |
| Month 10 | 15% | ₹85,000 | ₹90,500 | ₹5,500 cost | no single rate |
| Month 20 | none | ₹1,00,000 | ₹90,500 | ₹9,500 gain | about 13.3% (return) |
Early winners pay for the pot and late winners are paid for waiting. A 13% return from a last-month win can look better than an RD or the rates in our FD rates guide, but a bank deposit does not depend on a foreman paying out in month 20. Change the inputs to match the terms in your own chit agreement.
Who a chit suits: people with daily or irregular income, such as shopkeepers, traders and daily-wage earners, who can keep up a fixed monthly payment and want a lump sum for a known need like stock, a wedding or school fees. If you do not need the money early, an RD or FD is usually the better choice, because the return is fixed and the bank carries the risk, not a foreman. Our chit fund guide explains how to check that a chit is registered before you join.
Sources: Chit Funds Act, 1982 (sections 2, 6 and 21) as amended by the Chit Funds (Amendment) Act, 2019, and PRS Legislative Research on the Chit Funds (Amendment) Bill, 2019. The worked example is our own calculation. Verified November 2026.
Nice good morning sir