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Household money and budgeting

Household bill split

Dividing a household's shared bills, such as rent, utilities and internet, among the people who live there, and settling up who owes whom.

What It Means

A household bill split is how the people who share a home divide the bills they share: rent or the mortgageMortgageA loan used to buy or refinance a home, secured by the home itself and repaid in monthly installments over a set term. See more, utilities, internet, groceries and any subscriptions everyone uses. The split can be equal, by income, or by some other rule the household agrees on, such as a bigger share for the largest bedroom. Because one person often pays a bill in full and the others pay them back, a split also needs a way to settle up.

Try It: Settle Up the Month's Shared Bills

Example bills for three people splitting equally. Change the amounts and who paid each one.

Total$3,000
Fair share each$1,000
Alex$1,400
Blair-$745
Casey-$655

A plus amount is owed to that person; a minus amount is what they owe. The three always add to zero, so a transfer or two settles the month.

How It Sounds at Home

  • "I covered rent, so you two owe me."
  • "Just send me your share of the internet."
  • "Let's split utilities three ways."

The Breakdown

Worked example. Three roommates split four bills equally, and each bill is paid by whoever holds that account.

BillAmountPaid by
Rent$2,400Alex
Electric and gas$180Blair
Internet$75Blair
Groceries for shared meals$345Casey
Total$3,000

Each person's fair share is $3,000 ÷ 3 = $1,000.

PaidFair shareBalance
Alex$2,400$1,000Is owed $1,400
Blair$255$1,000Owes $745
Casey$345$1,000Owes $655

Blair pays Alex $745 and Casey pays Alex $655, and everyone has paid $1,000.

What the result means. The balances always add to zero, so one or two transfers settle the month. Settling on the same day each month, soon after rent goes out, keeps small amounts from piling up.

Ways to split

MethodHow it worksOften suits
EqualTotal ÷ number of peopleSimilar rooms and similar use
By incomeEach pays their share of the combined incomeCouples with different pay
By room or useA bigger room or heavier use pays moreRoommates with unequal rooms

Good to Know

Chase's guide to shared expensesShared expensesCosts two or more people agree to split, such as rent, utilities, groceries or a shared subscription, as opposed to costs each person covers alone. See more suggests agreeing on expectations before the first bill arrives: which costs are shared, how they're split and when people pay each other back. When you settle up with a payment appPeer-to-peer paymentMoney sent directly from one person to another through a payment app or a bank's app, such as Zelle, Venmo or Cash App. See more, the FTC's tips on peer-to-peer payments and Chase's own guides say to make sure you know who you're paying and to check the recipient before sending, since many of these payments can't be undone. Keep a written list of the shared bills and who holds each account, so the split still works when someone moves out.

FAQ

How do roommates split bills fairly?

Agree on a rule before the first bill: equal shares, shares by income, or bigger shares for a bigger room or heavier use. Writing it down, along with who pays each bill, heads off arguments later.

What's the easiest way to settle up shared bills?

Add up what each person paid, subtract their fair share, and have anyone who owes pay the person who's owed. Payment apps make that quick, but the FTC advises sending money only to people you know.

Should utilities be split equally?

An even split is the simplest, and a household can agree to split by use instead if one person's usage is clearly higher. Agree on it before the bill arrives, and write it down.

Do It in Buhata

Household budget

Set limits for shared categories like rent, utilities and groceries in Household budget in your Household Space, so everyone keeps to the same numbers.

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Related Terms and Categories

  • Proportional bill split

    Splitting shared bills in proportion to each person's income, so someone earning 60% of the combined pay covers 60% of the shared costs.

  • Shared expenses

    Costs two or more people agree to split, such as rent, utilities, groceries or a shared subscription, as opposed to costs each person covers alone.

  • Fixed expenses

    Costs that stay about the same every month, such as rent, a car payment or an insurance premium, usually due on a set date.

  • Joint account

    A bank or credit union account owned by two or more people, each of whom can usually deposit, withdraw, move money or close it.

  • Family budget meeting

    A planned, regular sit-down where the people who share a household's money look at the budget together, make decisions and agree who does what next.

Household money and budgeting

Sources

Chase, "A Guide to Shared Expenses with a Credit Card"; Chase, "Credit Card and Credit Score Basics" (splitting rent as a couple); Chase, "What is P2P Payment and How Does It Work"; Chase, "Choosing From The Different Ways To Send Money"; Federal Trade Commission, Consumer Advice, "Tips for using peer-to-peer payment systems and apps" (2018); Fidelity, "Money in relationships"; U.S. Bank, "Reasons why couples have separate bank accounts"

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