Home › Guides › Split expenses in different currencies

How to split expenses in different currencies

Pick one group currency, convert each foreign expense at the rate on the day it was paid (or the amount actually charged), and settle in that one currency. Agree up front who carries card fees.

Updated November 2026

Pick one group currency first

Balances only make sense in one currency. If some debts are in yen and others in pounds, nobody can tell who is up overall. So the first step is to choose a group currency, usually the one most of the group earns and spends in at home. Every foreign expense gets converted into it.

Which exchange rate should you use?

There are three sensible options. Each is defensible. What matters is that the group agrees on one.

The amount actually charged. Use the number on the payer's bank statement. It is the most accurate for the payer, but you may need to wait for the charge to clear, and it includes any card fees.
A market rate on the day you spent. Use a published mid-market rate for the date of the expense. It is quick and neutral, and it ignores card fees.
The rate on the day you settle. Convert everything at the end. It is simplest, but if the rate moved during the trip, the person who paid early carries that risk.

For most trips, converting at the time of spending is the fairest. The payer's cost was fixed on that day, so their friends should pay back the same value, not a value that has since gone up or down.

What about card fees and bad rates?

Many cards add a foreign transaction fee, and some apply a worse rate than the market. Cash from an ATM abroad may come with withdrawal fees too. Whether the group shares these is a fair question:

If the payer chose an expensive card when a fee-free option was available, they usually absorb the fee.
If the cost was unavoidable, such as a hotel that only takes cards, the group usually shares it by using the amount actually charged.

Whatever you decide, decide it before the trip. It is a much easier conversation when nobody knows yet who will be paying for the hotel.

Worked example: three friends from London in Tokyo

Amy, Ben and Cara spent a week in Japan. Their group currency is pounds. For this example, assume £1 = ¥190. This is an illustrative rate, not a live one.

Amy paid the hotel: ¥114,000. At ¥190 that is £600, but her card added a 3% fee, so she was charged £618.
Ben paid for meals: ¥57,000, which is £300. His card has no foreign fee, so he was charged exactly £300.
Cara booked rail passes in pounds before the trip: £330.

The group agreed beforehand that unavoidable card fees are shared, so they use the amounts actually charged.

Expense	Paid by	Amount	Split between
Hotel (¥114,000)	Amy	£618	All 3
Meals (¥57,000)	Ben	£300	All 3
Rail passes	Cara	£330	All 3
Total		£1,248

The total is £1,248, so each person's share is £416.

Person	Paid	Fair share	Balance
Amy	£618	£416	+£202
Ben	£300	£416	−£116
Cara	£330	£416	−£86

A plus balance means the group owes you. A minus balance means you owe the group.

Ben pays Amy £116
Cara pays Amy £86

If the group had decided the payer absorbs card fees, Amy's hotel would count as £600. The total would be £1,230 and each share £410. Ben would pay Amy £110 and Cara would pay her £80. Amy would carry the £18 fee herself.

Converting at spend time vs at settlement

Suppose the pound strengthened during the week and, by the time they settled, £1 bought ¥200. Converting Ben's ¥57,000 meals at the settlement rate would value them at £285, not £300. Ben would get back less than he paid. Converting at the time of spending avoids that, which is why it is usually the better default.

The reverse can happen too. Converting at the time of spending protects whoever paid from any movement afterwards, in either direction.

Step by step

Choose one group currency. Usually the currency most of the group lives in. Every balance is shown in it.
Record each expense in the currency you paid. Keep the original amount, so you can check the conversion later.
Agree which rate to use. Either the amount your card was actually charged, or a market rate on the day of spending. Agree before the trip.
Decide who carries card fees. Either the payer absorbs them, or the group shares them. Most groups share them when the payer had no fee-free option.
Settle in the group currency. Work out net balances in one currency and settle once, rather than in several currencies.

How SplitSimple handles currencies

Each group has its own currency. When you add an expense, you can pick a different currency for that expense, and SplitSimple converts it into the group currency when you save it. That means the conversion is fixed at the time you add it, which matches the "convert at time of spending" approach. All balances and the settle-up are in the group currency.

If you want to use the exact amount your card was charged, including fees, enter the expense in the group currency using the number from your statement. Add the foreign amount in a comment for reference.

More on trips with friends: split travel expenses with friends.

FAQ

What exchange rate should I use to split expenses abroad?

Most groups use the rate on the day of spending, or the amount the card was actually charged. Either is fair if agreed in advance. Converting at settlement shifts exchange-rate risk onto whoever paid.

Who should pay foreign card fees?

If the payer could have used a fee-free option, they usually absorb the fee. If the fee was unavoidable, the group usually shares it by using the amount actually charged.

Should we settle in the local currency or our home currency?

Usually the home currency, since that is what people will use to pay each other back. Pick one group currency and convert everything into it.

Can I add expenses in different currencies in SplitSimple?

Yes. You can choose a currency for each expense, and it is converted into the group currency when you save it.

What if two friends live in different countries?

Pick the group currency that suits most people. Whoever pays across currencies will see their bank's rate on the transfer, so agree whether the payer or receiver absorbs any small difference.

Track it with your group

SplitSimple is free: add expenses, see who owes whom, and settle up with the fewest payments.

Start a group, free