One of MintiMoney's most powerful features is debt simplification. Instead of having everyone pay everyone else, we calculate the minimum number of transactions needed to settle all debts.
The Problem
Imagine a group of four friends: Alice, Bob, Carol, and Dave.
- Alice owes Bob $20
- Bob owes Carol $15
- Carol owes Dave $10
- Dave owes Alice $25
Without simplification, that's 4 separate payments. Confusing and time-consuming.
The Solution
Our algorithm analyzes all the debts and calculates: - Who is a net payer (owes money overall) - Who is a net receiver (is owed money overall)
Then it matches payers with receivers to minimize transactions.
How It Works
Step 1: Calculate Net Balances For each person, we calculate their net position (total owed to them minus total they owe).
Alice: -$20 + $25 = +$5 (net receiver) Bob: +$20 - $15 = +$5 (net receiver) Carol: +$15 - $10 = +$5 (net receiver) Dave: +$10 - $25 = -$15 (net payer)
Step 2: Match Payers and Receivers Dave owes $15 total. We can settle with just 3 payments: - Dave pays Alice $5 - Dave pays Bob $5 - Dave pays Carol $5
We reduced 4 payments to 3!
Real-World Benefits
In larger groups, the savings are even more dramatic. A group of 10 people might have 20+ individual debts that can be settled with just 5-6 payments.
When to Simplify
- End of a trip
- Monthly settlement for roommates
- After a big group event
Transparency
We always show you both views: - Individual debts (who owes you specifically) - Simplified settlement (minimum payments needed)
This way, you understand the full picture while benefiting from simplified payments.
Try It Yourself
Add some expenses with multiple people and watch the magic happen!