Chit Fund / Committee (BC) Calculator
Enter total members, monthly amount and your turn number — see the real interest-equivalent value (or cost) of when you take your payout.
How to use — Chit Fund / Committee (BC) Calculator
- Enter total members and the fixed monthly amount everyone contributes.
- Enter your turn number — which month you receive the full pool (1 = first, last = final month).
- Enter a reference interest rate (like your FD rate) to see what that early access is really worth.
- Taking your turn early shows a benefit (like an interest-free loan); taking it last shows zero benefit (you were just saving).
FAQ
How does a committee (BC) work?
N members each contribute a fixed amount every month. Each month, one member (by rotation, lottery or need) takes the full pool (N × amount). Everyone pays in for the whole cycle and everyone receives the pool exactly once.
Why does turn order matter if everyone gets the same amount?
Because of timing. The person who takes the pool in month 1 has only paid in 1 installment but receives the full amount — effectively an interest-free advance on the rest, repaid via their remaining monthly payments. The person who takes it last has fully paid in already — they just saved, with no advance.
How is the "benefit" value calculated?
The outstanding advance ((N − your turn) × amount) declines by one installment each month until the cycle ends. Multiplying each month's outstanding balance by your reference monthly rate and summing gives the interest-equivalent value of getting that money early — the same logic used for loan interest.
Is an auction-based chit fund different?
Yes. In registered chit funds, members bid a discount to take the pool early — the discount is distributed among other members as a dividend. That built-in price mechanism replaces the implicit "advance" this calculator estimates for simple no-auction committees.