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Shares are rounded to the smallest unit of the currency, such as a cent. If rounding leaves a unit over or short, it goes to the person with the largest unrounded part, so the shares always add up to the bill.
For example, when splitting a bill between two or three people with differing income levels, you can achieve a more equitable distribution by having each person contribute according to how much they earn. This approach can work well between family members and close friends.
It ensures that the payment burden is shared in proportion to each individual's financial situation. This calculator will ensure that each person has a fair share.
Add up everyone's income. Each person's part of the bill is their income divided by the total income, multiplied by the bill.
The first person pays $600 and the second person pays $300.
In a split by income, everyone pays the same percent of what they earn. In the example, $600 is 20% of $3,000, and $300 is 20% of $1,500.
Mixing up income periods. If one person's income is monthly and another's is yearly, the shares will be wrong. Use the same period for everyone, for example monthly income for all.
A $1,200 bill is shared by two people who earn $4,000 and $2,000. How much does each person pay?
$800 and $400. The total income is $6,000, so the first person pays $4,000 ÷ $6,000 × $1,200 = $800 and the second pays $2,000 ÷ $6,000 × $1,200 = $400.
For example, suppose the cost of a bill is $10,000. One person makes $10,000 per month and the other makes $5,000 per month.
If you were to split the bill 50/50, the one who makes $5,000 will have to use his entire income.
However, if you use the calculator to split the bill according to income the one who makes $10,000 will give $6,666.67 and the one who makes $5,000 will give $3,333.33.
Each person pays about 66.7% of their income, instead of one person paying all of theirs.
Three people earn $2,000, $3,000 and $5,000 and share a $500 bill by income. How much does the person who earns $5,000 pay?
$250. The total income is $10,000, and $5,000 ÷ $10,000 × $500 = $250.