How Balance Calculations Work

Written By Bradley Bernard

Last updated 4 months ago

Balances in SplitMyExpenses show the net amount each person owes or is owed based on all expenses in a group or friendship. Understanding how these numbers are calculated helps you track who needs to pay whom.

The Basic Formula

For each expense, the system calculates:

  1. What each person paid - The total amount they contributed to the expense

  2. What each person owes - Their share of the expense based on how it was split

  3. The difference - If you paid more than your share, others owe you. If you paid less than your share, you owe others.

Example

You and two friends split a $90 dinner equally:

  • You paid the full $90

  • Each person's share is $30

Result: Each friend owes you $30, because you paid $60 more than your $30 share.

How Balances Accumulate

Balances aren't calculated per expense—they're the running total across all expenses. This means:

  • If Friend A owes you $50 from one expense, but you owe them $30 from another, your balance shows they owe you $20 (the net)

  • When you look at the sidebar, you see the cumulative result of all expenses combined

Note: This is why an individual expense might show you're owed $100, but the overall balance shows less. Other expenses may have offset that amount.

Why Expenses Show "Settled"

An expense displays as "Settled" when the balances from that expense have been fully offset—either by:

  • A payment recorded between the parties

  • Other expenses that balanced out the amounts

This doesn't mean someone physically paid you. It means the math across all expenses nets to zero for that particular split.

The Sidebar Balance

The balance shown in the sidebar represents:

  • Positive amount (green): This person owes you money

  • Negative amount (red): You owe this person money

  • Settled: All debts between you and this person are balanced

These numbers update in real-time as expenses are added, edited, or removed.

Common Questions

Q: Why does the balance seem wrong? Check if you have Simplified Debts enabled. This feature restructures who pays whom to minimize the number of transactions, which can make individual balances look different than expected.

Q: Why do I always get the extra cent? When an expense doesn't split evenly (like $100 split 3 ways = $33.33 each with 1 cent remainder), the extra cent goes to people earlier in the list. As the expense creator, you're typically first.

Q: Can I see a breakdown of how a balance was calculated? Yes—click on any expense to see exactly how it was split and who paid what. The Activity Log also shows all changes made to expenses over time.

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