Smart settlements
How Settled Up calculates the fewest payments needed to settle a tab.
The problem
Imagine 4 friends on a trip. Everyone has paid for different things. Without optimisation, you might need 6 separate payments to settle up. That is a lot of bank transfers.
Settled Up reduces this to the minimum number of payments needed.
How it works
First, Settled Up calculates each person's net balance — the difference between what they paid and what their share was across all expenses.
- Positive balance: you paid more than your share. Others owe you.
- Negative balance: you paid less than your share. You owe others.
- Zero: you are already settled.
Then, the settlement algorithm pairs up people who owe money with people who are owed money, starting with the largest amounts first. Each payment settles as much as possible in one go.
An example
After a weekend trip, the net balances are:
| Person | Balance |
|---|---|
| Alice | +£80 |
| Bob | +£20 |
| Charlie | -£60 |
| Dana | -£40 |
Instead of multiple criss-crossing payments, Settled Up calculates:
- 1 Charlie pays Alice £60
- 2 Dana pays Alice £20
- 3 Dana pays Bob £20
3 payments instead of potentially 6. Everyone is settled.
When do settlements appear?
Settlement suggestions appear on the Balances tab whenever there are non-zero balances. They update automatically as expenses and payments are added.
Settlements are suggestions — Settled Up tells you who should pay whom, but the actual payments happen outside the app (bank transfer, cash, etc.). Once paid, you record the payment in the app and the recipient confirms it.