How To Create A Fixed Payment Chit
In a Fixed Payment chit every member pays the same amount every month, before and after they lift. The recipient’s payout is what changes: it starts lower and climbs through the chit.
This guide explains the model and the steps to create one in the ChitsApp Android app.
At A Glance
How It Works
- Every member pays the installment each month for the whole chit.
- You set the First Payout and the Last Payout. ChitsApp works out the months between, so the payout climbs from one to the other.
- Your commission is what the month’s collection leaves after the payout. It can dip below zero part-way through, and the app tells you in how many cycles.
How The Payout Climbs
The app’s sample chit: ₹1,95,000 over 30 months, ₹6,500 from each of 30 members, so ₹1,95,000 is collected every month.
| Month | Collected | Recipient receives | Left over |
|---|---|---|---|
| Month 1 | ₹1,95,000 | ₹1,50,000 | ₹45,000 |
| Month 2 | ₹1,95,000 | ₹1,50,800 | ₹44,200 |
| Month 10 | ₹1,95,000 | ₹1,64,000 | ₹31,000 |
| Month 12 | ₹1,95,000 | ₹1,69,200 | ₹25,800 |
| Month 20 | ₹1,95,000 | ₹1,97,500 | −₹2,500 |
| Month 30 | ₹1,95,000 | ₹2,50,000 | −₹55,000 |
Collected less the payout is what is left, and it is negative from cycle 20. Payouts are rounded to ₹100. The app’s own warning on this sample: collections fall short of the payout in 11 of 30 cycles, first at cycle 20.
How The Calculation Works
The rules ChitsApp applies each month, with the numbers from the example.
- Collection = installment × members, the same every month. ₹6,500 × 30 = ₹1,95,000.
- The payout climbs from the First Payout (₹1,50,000) to the Last Payout (₹2,50,000). ChitsApp works out the months between so that the commission you set is the average the organiser keeps: 4% of ₹1,95,000 a month is ₹2,34,000 over the 30 months.
- Commission each month = collection − payout. Month 10: ₹1,95,000 − ₹1,64,000 = ₹31,000. Month 20: ₹1,95,000 − ₹1,97,500 = −₹2,500.
- Payouts are rounded to ₹100 in this example.
The Settings You Fill In
Each one in plain words, in the order the form shows them.
- Chit Name
- What you and your members call the chit. ChitsApp gives every chit its own code as well, built from your organisation code.
- Installment
- The amount every member pays every month.
- Duration (Months)
- How many months the chit runs. Each month is one cycle and one member lifts the chit, so the chit has as many units to fill as it has months.
- First Payout
- What the recipient gets in month 1, as an amount or a percentage.
- Last Payout
- What the recipient gets in the last month, entered the same way.
- Commission
- Your fee, as an amount or a percentage of the chit amount.
- Start Date
- The first cycle. Pick it from the calendar.
Steps To Create It
From the Chits tab to a live chit, in the Android app.
Choose Fixed Payment
In the Chits tab choose Create New Chit and tap Fixed Payment Chit: the same payment every month. Show Example opens a sample chit with its month-by-month payout.
Fill in the chit
Enter the chit name, the installment and the duration, then the first and last payout and your commission. The rupee figure for each percentage is shown under the field.
Check the preview
Continue opens the Scheme Preview: the chit value, the duration and a table of every month. Read down it to see what each member pays and what the recipient gets each month.
Save & Continue creates the chit as a draft. The screen says so: nothing is shared with anyone until you publish.
Add your members
The Members step shows Slots Filled, for example 15 of 20. Add each member with a phone number, a name and the number of units they hold, or use Existing to pick people already in your members list, or Contacts to import from your phone.
Review & Create unlocks once every slot is filled.
Confirm and publish
Confirm lists the chit, its schedule, the roster and your earnings. When it looks right, Publish Chit asks once more: the schedule and the roster become live, and the chit can be shared with its members.
Start the first cycle
Publishing does not start cycle 1. Open the chit, choose Assign Recipient to pick who lifts this month, then Activate Cycle. Payments then show as pending for every member.
Common Questions
Why does the commission go negative late in the chit?
Every member pays the same amount, so the collection stays at ₹1,95,000, while the payout keeps climbing. From month 20 in the example the payout is higher than the collection, and the app tells you in how many cycles that happens.
Does the member who lifts pay as well?
Yes. Every member pays the installment every month, including the member who lifts that month.
How are the months between the first and last payout decided?
You set the first and last payout and the commission. ChitsApp works out the months between, and rounds each payout (to ₹100 in the example).
Keep Reading
Free tools for this model:Chit Chart Maker
Run your chits in ChitsApp
Start with up to 2 running chits free. No card needed. ChitsApp records payments; it does not hold or collect your members’ money.