In short
- Agree up front on the currency you will settle up in.
- Log each expense at the rate you actually paid.
- Use the rate from the day of the expense, not the day you get paid back.
Which exchange rate to use
Agree on one of these before you start:
- Your statement: if you paid by card, what your bank charged you in your currency, fees included.
- Your cash rate: if you paid with bills you bought earlier, the rate from that exchange.
- An agreed rate: the rate of the day, the same for everyone. It is simpler, but whoever got a worse rate covers the difference.
An example with euros and dollars
Emma, Jake and Priya go to Madrid and settle up in dollars. Emma books the hotel online: $600. Jake pays for a €150 dinner by card, and his statement shows $165 (a rate of 1.10). Priya pays for a €90 tour with euros she bought at 1.20: it cost her $108.
| Person | Paid | Share | Balance |
|---|---|---|---|
| Emma | $600 | $291 | +$309 |
| Jake | $165 | $291 | −$126 |
| Priya | $108 | $291 | −$183 |
It adds up to $873, or $291 each. Jake sends Emma $126 and Priya sends her $183. At 1.10 for everything, Priya’s tour would count as $99, and she would get credit for $9 less than she paid. If you all live in different countries, settle in dollars and each person converts on the day they pay.
For the rest of the trip, see group trip expenses.
Do it in Divall
In a Vacation account, the trip runs in the destination’s currency:
- Add your friends by name, even if they don’t have the app.
- Log each expense in its currency, with its rate, who paid and who it was for.
- Divall adds it up in the trip’s currency and tells you who pays whom. Divall keeps the record; each person moves their own money.
Vacation is part of Divall Pro, with a 7-day free trial. In the free accounts you pick each one’s currency, and in DivMe each currency has its own month. Divall is free to start: with Vacation you settle the whole trip in one currency.
Frequently asked questions
Which exchange rate is the fairest?
The one each person actually paid: the card statement or their cash rate. For something simpler, one daily rate for everyone, agreed before the trip.
Do card or ATM fees count?
If you paid for something the group shared, the fee is part of what it cost you, so it counts. If you took out cash for yourself, it is yours.