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We demonstrate the lasing effect in cholesteric liquid crystal using an auxiliary differential equation finite-difference time-domain method. The transmission spectrum and laser phenomenon in cholesteric liquid crystal without and with gain medium are presented. The solver combines with four level electron system, classical electron oscillator model and Maxwell's equations. In this solver, the wavelength of emission is agreed with that of band edge of cholesteric liquid crystal. We also analyze the lasing property at different pitches and pumping rates. Threshold value can also be determined from different pumping rates.