Smart Settle Math

Settlr uses two different methods to display group debts: Smart Settle and Raw Debts. You can toggle between them at any time in the event settlement view.

1. Raw Debts (Direct Splitting)

Raw Debts maps each transaction exactly as it occurred. If Ken paid for a seafood dish eaten by Cath and Vitto, Cath and Vitto owe Ken directly for their respective portions.

• Pros: Transparent mapping of who bought what.
• Cons: Can result in a very high number of bank/wallet transfers (e.g. if 5 people eat together, you could end up with 10 separate minor transactions).

2. Smart Settle (Debt Netting)

Smart Settle runs a debt consolidation algorithm (known as transaction netting) to simplify transfers. It calculates the net balance of every participant:

Net Balance = Total amount you paid - Total amount you consumed

• If your Net Balance is positive, you are owed money.
• If your Net Balance is negative, you owe money.
• If your Net Balance is zero, you are completely settled.

The algorithm then pairs the largest debtor with the largest creditor to resolve the balances in the minimum possible number of transaction steps.

• Example: If Cath owes Vitto Rp 50,000, and Vitto owes Ken Rp 50,000, Smart Settle simplifies this so that Cath pays Ken Rp 50,000 directly, and Vitto does not need to make or receive any transfers.

Proportional Taxes and Services

When you split an itemized receipt, Settlr automatically distributes extra charges (such as Tax, Service Fees, and Tips) proportionally.

• If you consumed 30% of the subtotal items, you are automatically assigned 30% of the tax and service charges.
• This ensures that split bills are mathematically fair and proportional to what each person actually ordered.