What It Means
A proportional bill split divides shared household costs by each person's share of the combined income, instead of down the middle. Each person pays their income divided by the total income, times the shared bills. The partner who earns more pays more in dollars, and both pay the same percentage of their own pay.
Try It: Split Shared Bills by Income
Example numbers. Enter each person's monthly income and the shared bills.
Each of you puts of your income toward the shared bills. Split 50/50, it would be each.
How It Sounds at Home
- "She makes more, so we do sixty-forty."
- "We each chip in the same percent of our paychecks."
- "Let's redo the split now that I got the raise."
The Breakdown
Formula
Your share = shared bills × (your income ÷ combined income)
Worked example. Jess takes home $6,000 a month and Sam $4,000, $1010,000 stepsA popular daily step goal that began as the name of a 1960s Japanese pedometer; later studies find health benefits begin well below it. See more,000 together. Their shared bills come to $3,000.
| Jess | Sam | |
|---|---|---|
| Take-home payTake-home payThe money that actually reaches you from a paycheck after taxes and other deductions are taken out, also called net pay or net income. See more | $6,000 | $4,000 |
| Share of combined income | 60% | 40% |
| Share of $3,000 in bills | $1,800 | $1,200 |
| Left for personal spending and saving | $4,200 | $2,800 |
| Bills as a share of own pay | 30% | 30% |
What the result means. Both end up paying 30% of what they earn toward the household. Split 50/50, Sam would pay $1,500, or 37.5% of his pay, while Jess would pay 25% of hers. Chase gives the same kind of example with salaries, where $100,000 and $50,000 split bills 2 to 1.
Decide together
- Whether to use take-home or gross payGross incomeThe full amount you earn before taxes and other deductions come out. For federal taxes, it's all income you receive unless a law exempts it. See more, and whether bonuses and commissions count.
- Which bills are shared and which stay personal.
- When to redo the math, for example once a year or after a raise.
Good to Know
Guides from Chase, Fidelity, U.S. Bank and Wells Fargo describe both even and income-based splits, mention couples who revisit the percentages each year as incomes change, and note that income can include more than base salary, such as bonuses and commissions. If you each pay your share into a joint accountJoint accountA bank or credit union account owned by two or more people, each of whom can usually deposit, withdraw, move money or close it. See more, keep the CFPB's point in mind that in most cases either owner of a joint account can withdraw the money or close the account. No rule says which split is fair, so agree on one you can both explain and write it down.
FAQ
How do you calculate a proportional bill split?
Add both incomes, divide each person's income by the total to get their percentage, and multiply the shared bills by it. With $6,000 and $4,000 incomes and $3,000 in bills, the shares are $1,800 and $1,200.
Is splitting bills by income fairer than 50/50?
It depends on what the couple valuesPersonal valuesThe principles and qualities a person holds most important, such as honesty, family or creativity, which guide their choices and how they judge events. See more. A proportional split means each person gives the same share of their pay, while 50/50 means the same dollar amount, and bank guides such as Chase's and Fidelity's describe both.
Should we use gross income or take-home pay?
Either works if you both agree. Take-home pay reflects what each person actually has to spend, and bank guides note income can include bonuses and commissions, so decide whether those count too.
Do It in Buhata
Budget, repeating entries
Add your share as a repeating entry in Budget on the day you move it to the shared account, so your own budget shows what's left after the household bills.
Open BuhataRelated Terms and Categories
- 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.
- 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.
- 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.
- Dual income household
A household where two adults, usually a couple, both earn income from work, so the budget runs on two paychecks.
Sources
Chase, "Credit Card and Credit Score Basics" (splitting rent as a couple); Fidelity, "Money in relationships"; U.S. Bank, "Reasons why couples have separate bank accounts"; Wells Fargo, "How To Manage Finances As A Couple"; Consumer Financial Protection Bureau, "A joint checking account owner took all the money out and then closed the account without my agreement. Can they do that?"
- www.chase.com/personal/credit-cards/education/basics/split-rent-couple
- www.fidelity.com/learning-center/life-events/money-in-relationships
- www.usbank.com/financial-education/spend/reasons-couples-should-have-separate-bank-accounts.html
- www.wellsfargo.com/financial-education/basic-finances/manage-money/relationships-finances/financial-questions-new-couples
- www.consumerfinance.gov/ask-cfpb/a-joint-checking-account-owner-took-all-the-money-out-and-then-closed-the-account-without-my-agreement-can-they-do-that-en-1099
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