Question 1

What does the chit fund interest calculator show?

Accepted Answer

For any lift month you pick, it shows the total amount paid up to that month, the payout received, the net gain or loss, and the effective return — the same figures a member would work out by hand from the chit's schedule, calculated instantly for the month you choose.

Question 2

What is a lift month?

Accepted Answer

The lift month is the month a member takes the chit — either by winning the auction (Pay Less and Fixed Auction chits) or by a fixed schedule (Fixed Payout and Fixed Payment chits). Payments before and after that month, and the payout itself, all depend on which month it falls in.

Question 3

How is the effective return calculated?

Accepted Answer

The effective return compares the payout a member receives against the total amount they've paid up to the lift month, expressed as a percentage. Lifting earlier usually means a smaller payout relative to what's paid in, while lifting later usually improves the return.

Question 4

What is the difference between Pay Less, Fixed Auction, Fixed Payout and Fixed Payment chits?

Accepted Answer

Pay Less and Fixed Auction chits set the payout by auction, but Pay Less lowers a member's payment before they lift and raises it after, while Fixed Auction keeps the payment the same throughout. Fixed Payout chits fix the payout amount and let the payment vary. Fixed Payment chits fix one payment for every member, every month, with no auction at all.

Question 5

Does the calculator account for organizer commission?

Accepted Answer

Yes. The commission percentage you enter is deducted before working out the payout and returns, so the figures shown already reflect what a member actually receives after the organizer's commission — not the gross chit amount.

Chit Fund Interest Calculator

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