Chit Fund & Committee Dividend Profit Calculator

Formula & Calculation Methodology

Dividend Pool = Auction Discount − (5% Foreman Fee). Dividend Per Member = Dividend Pool / Total Members. Effective Installment = Base Installment − Dividend.

Dividend_{Member} = \frac{Discount - (0.05 \times Chit\_Value)}{Members}

Step-by-Step Worked Example

Chit Value: ₹5,00,000 | Members: 20 | Winning Auction Bid Discount: ₹60,000 (12%)

1. 1. Base Monthly Installment = ₹5,00,000 / 20 = ₹25,000
2. 2. Foreman Commission (5%) = ₹5,00,000 × 0.05 = ₹25,000
3. 3. Net Dividend Pool = ₹60,000 − ₹25,000 = ₹35,000
4. 4. Dividend Per Member = ₹35,000 / 20 = ₹1,750
5. 5. Effective Monthly Installment Paid = ₹25,000 − ₹1,750 = ₹23,250
6. 6. Prize Money Received by Bidder = ₹5,00,000 − ₹60,000 = ₹4,40,000

How Chit Fund (Committee / Bishi) Dividend Mechanism Works

A Chit Fund (also known as Committee, Bishi, or Kuri) is a traditional Indian peer-to-peer savings and credit mechanism governed by the Central Chit Funds Act 1982.

Each month, subscribers bid an auction discount to receive the pooled prize money. After the registered foreman deducts their statutory 5% organizing fee, the remaining discount is distributed equally as a cash dividend to reduce all members’ monthly contribution.

Frequently Asked Questions