How does the settlement algorithm minimize transfers?

The tool sorts people who are owed money (creditors) from largest to smallest, and people who owe money (debtors) from most-owing to least-owing. It pairs the biggest creditor with the biggest debtor and settles as much as possible in one payment. This greedy approach consistently produces the minimum number of transfers, which keeps the settlement process simple for the group.

What if someone paid in a different currency?

Enter the exchange rate for each foreign currency in the settings panel. All amounts are converted to your chosen base currency before the balance sheet is calculated. Both the original amount and the converted base-currency amount are shown in the expense log.

What if a new expense is added after partial settlement?

Add the expense to the log at any time. The balance sheet and settlement list recalculate instantly. If the group has already made some payments, you can note this by adjusting individual balances or by logging the payment as a negative expense. The tool does not track actual payment completion, it calculates what is owed based on the expense log.

How do I handle tips and service charges that are hard to track precisely?

Log them as a separate expense with an approximate amount and a description like \\\"tips and incidentals.\\\" If multiple people in the group gave tips at different points, one person can consolidate them into a single line item, \\\"all tips, day 2\\\", for simplicity. The tool is designed for practical settlement, not accounting precision. Rounding small amounts to the nearest dollar and grouping minor incidentals into a single entry keeps the expense log manageable without meaningfully affecting the final settlement figures.

What if a traveler paid for an expense that should only apply to some members of the group, not all?

Currently the tool splits each logged expense across all travelers according to their weight ratios. If one expense should be shared only by a subset of the group, log it as a separate entry and temporarily adjust traveler weights to reflect only that subset. Alternatively, you can settle that particular expense separately outside the tool and log only the shared expenses that apply to everyone. A per-expense participant selection feature would handle this cleanly; that is a planned future addition.

How accurate is the minimum-transfer settlement?

The greedy algorithm is mathematically optimal for minimizing the number of transfers required to clear all balances, assuming all balances are resolved in a single settlement round. It does not factor in which payment methods each person prefers or which pairings are most convenient. If two people happen to share a payment app, paying each other directly is practical regardless of whether the algorithm pairs them; the result is the same net balance as long as the total amount is correct.

Travel Cost Splitter

Split shared trip costs with unequal shares, mixed currencies, and a short list of who pays whom to settle up.

Travelers

NameWeight

33.33% share

NameWeight

33.33% share

NameWeight

33.33% share

Expenses

Base currency

DescriptionAmountCurrencyPaid by

Balances (USD)

Name	Paid	Share	Net
Alex	$90.00	$30.00	+$60.00
Jordan	$0.00	$30.00	-$30.00
Sam	$0.00	$30.00	-$30.00

Settlement

Jordan pays Alex $30.00
Sam pays Alex $30.00

Expense log

Group dinner · $90.00 (USD, paid by Alex)

Alex: $30.00
Jordan: $30.00
Sam: $30.00

Settlement math is a planning aid. Confirm amounts with your group before sending money.

How this tool works

### Step 1: Define travelers and share weights

Worked example

Travelers: Alice, Bob, Carol (weight 1 each; each owes 1/3 of total expenses)

Related tools

Frequently asked questions

How does the settlement algorithm minimize transfers?
The tool sorts people who are owed money (creditors) from largest to smallest, and people who owe money (debtors) from most-owing to least-owing. It pairs the biggest creditor with the biggest debtor and settles as much as possible in one payment. This greedy approach consistently produces the minimum number of transfers, which keeps the settlement process simple for the group.
What if someone paid in a different currency?
Enter the exchange rate for each foreign currency in the settings panel. All amounts are converted to your chosen base currency before the balance sheet is calculated. Both the original amount and the converted base-currency amount are shown in the expense log.
What if a new expense is added after partial settlement?
Add the expense to the log at any time. The balance sheet and settlement list recalculate instantly. If the group has already made some payments, you can note this by adjusting individual balances or by logging the payment as a negative expense. The tool does not track actual payment completion, it calculates what is owed based on the expense log.
How do I handle tips and service charges that are hard to track precisely?
Log them as a separate expense with an approximate amount and a description like \\\"tips and incidentals.\\\" If multiple people in the group gave tips at different points, one person can consolidate them into a single line item, \\\"all tips, day 2\\\", for simplicity. The tool is designed for practical settlement, not accounting precision. Rounding small amounts to the nearest dollar and grouping minor incidentals into a single entry keeps the expense log manageable without meaningfully affecting the final settlement figures.
What if a traveler paid for an expense that should only apply to some members of the group, not all?
Currently the tool splits each logged expense across all travelers according to their weight ratios. If one expense should be shared only by a subset of the group, log it as a separate entry and temporarily adjust traveler weights to reflect only that subset. Alternatively, you can settle that particular expense separately outside the tool and log only the shared expenses that apply to everyone. A per-expense participant selection feature would handle this cleanly; that is a planned future addition.
How accurate is the minimum-transfer settlement?
The greedy algorithm is mathematically optimal for minimizing the number of transfers required to clear all balances, assuming all balances are resolved in a single settlement round. It does not factor in which payment methods each person prefers or which pairings are most convenient. If two people happen to share a payment app, paying each other directly is practical regardless of whether the algorithm pairs them; the result is the same net balance as long as the total amount is correct.