How to keep track of who owes you money
Quick answer
Keep a ledger with one line per event: the date, who, what, the amount and which way the money runs. Add the lines into a running net for each person, counting both directions. If a friend owes you $40 across three dinners and you owe them $16.25, they owe you $23.75. Settle when the net passes a set amount, such as $20, or once a month.
Key points
- Each ledger line holds five things: date, who, what, amount and direction. A plus means they owe you and a minus means you owe them.
- Net both directions. $40 owed to you and $16.25 owed back is one payment of $23.75, not two payments.
- Settle when the net reaches a set amount, such as $20, or on a set day each month, so small balances do not pile up.
- A notes app works for one friend, a spreadsheet for several. A shared tracker keeps both people looking at the same number.
On this page
What goes in a ledger line?
A ledger line holds five things: the date, who, what, the amount and the direction. The direction says which way the money runs. Write it as a plus when they owe you and a minus when you owe them, so every line can be added without thinking.
One ledger per person is the simplest layout. If you keep everyone in one sheet, add a “who” column. The other columns stay the same.
What does a ledger look like?
Say you and Jordan split things over a few weeks. Jordan owes you for three dinners, and you owe Jordan for concert tickets that Jordan paid for.
| Date | What | Amount | Running net |
|---|---|---|---|
| Sep 6 | Thai dinner, you paid | Jordan owes you $11.00 | Jordan owes you $11.00 |
| Sep 13 | Concert tickets, Jordan paid | You owe Jordan $16.25 | You owe Jordan $5.25 |
| Sep 20 | Pizza dinner, you paid | Jordan owes you $14.00 | Jordan owes you $8.75 |
| Oct 4 | Dinner, you paid | Jordan owes you $15.00 | Jordan owes you $23.75 |
The three dinners add up to $11.00 + $14.00 + $15.00 = $40.00. The tickets are $16.25 going the other way. $40.00 less $16.25 is $23.75, so Jordan owes you $23.75.
Each line is the other person’s share, not the whole bill. A $28 dinner that you paid and split two ways is a $14 line.
Why net both directions?
Netting turns two payments into one. Without it, Jordan would send you $40.00 and you would send Jordan $16.25. With it, Jordan sends $23.75 and the books are even. It also means a balance can change sides. After the Sep 13 tickets, the net flips and you owe Jordan $5.25 until the next dinner.
When should you settle?
Settle when the net passes a set amount, or on a set day, and agree the rule up front. Say the amount is $20.
- After Sep 6: the net is $11.00, under $20, so nothing happens.
- After Sep 13 and Sep 20: the net is $5.25 the other way, then $8.75 in your favor. Still under $20.
- After Oct 4: the net is $23.75, over $20, so Jordan sends $23.75 and the net goes back to zero.
A monthly day works the same way. On the 1st, whatever the net is gets settled, however small. If a friend repeatedly leaves it unpaid, what to do when a friend owes you money and won’t pay has the steps.
Notes app, spreadsheet or shared tracker?
The right tool depends on how many people you track and whether they need to see the numbers.
| Tool | How the net is worked out | Who sees it | Where it gets hard |
|---|---|---|---|
| Notes app | By hand, line by line | Only you, unless you share the note | A long list is slow to total |
| Spreadsheet | A formula in the running net column | Only you, unless you share the file | Someone has to keep the formulas right |
| Shared tracker | Updates when an expense is saved | Everyone in the group | Each person has to be added first |
In a spreadsheet, put headers in row 1, then the date in column A, the person in B, the line in C and the amount in D, with what they owe you as positive numbers and what you owe them as negative numbers. The running net for a person is =SUMIF(B$2:B2,B2,D$2:D2) in the row of each line. A person’s current total is =SUMIF(B:B,"Jordan",D:D).
A shared tracker does the adding for you. When one person saves an expense, everyone in it sees the new balance, and a payment made in cash or by bank transfer can be recorded as a payment.
How does EvenOut keep the net?
EvenOut keeps the ledger for you once the expenses are in.
- Add the person. On the Friends tab, tap “Add a friend” and have them scan your code or open your invite link.
- Add each expense. Choose “With {name}”, “Paid by you” or “Paid by {name}”, and “Split equally”. The ledger line is their share.
- Read the number. The friend’s page shows one figure, such as “Jordan owes you $23.75”. When the balance comes from more than one place, “Where it comes from” lists each group and “Just you two”.
- Check the history. The Activity tab labels each row “you lent” or “you borrowed”, and its filters separate “Expenses” from “Payments”.
- Settle. “Settle up” records a payment, including a partial one. EvenOut does not move money and has no payment links.
You can add and edit expenses without a connection, and they sync when you are back online. “Remind {name}” sends a reminder by email or a shared message, at most one a day per person.
What should you do next?
Pick the layout, agree the settle-up amount with the other person and write the first line. For how to ask and what to say when the balance is due, see how to pay your friends back and record it. If you want a written record for a larger loan, the IOU note template has one.
Frequently asked questions
Should I record the whole bill or only their share?
Record only their share. If you paid $60 for dinner for two and split it equally, the ledger line is $30 owed to you, not $60. Recording the whole bill makes the running net wrong from the first line.
What if we disagree about a line?
Fix it with a new line instead of rubbing out the old one, and note why. In EvenOut you can edit the expense, or delete it and add the right one. A deleted expense stops counting toward balances and can be restored from its page.
What if the balance never reaches the settle-up amount?
Pair the threshold with a calendar date, such as the end of each quarter, when any open balance is settled or both of you agree to drop it. The date stops a small number from sitting open for a year.
Do I need to write a note when a balance is settled?
Yes, one line is enough: the date, the amount and how it was paid, such as 'Settled Oct 12, $23.75, bank transfer'. A settled line brings the running net back to zero and closes the question.
Sources
Checked October 6, 2026.
Keep reading
- Guide How to pay your friends back and record it Pay several friends in the fewest payments: subtract what they owe you, pick an app by amount and eligibility, then record each payment so balances read zero.
- Guide Friend owes you money and won't pay: what to do A five-step plan for a friend who won't pay: one written message, a payment plan worked out in numbers, a deadline, a last message and a decision.
- Template IOU note template for lending money to a friend A free one-page IOU template with a payments log and a running balance. The filled example is $300 lent and repaid at $50 a month, ending at $0.
- Glossary Creditor and debtor: what it's called when someone owes you money The person owed money is the creditor and the person who owes it is the debtor. See the words in a two-person example where a $30.00 debt flips to $16.00.
- Guide How to figure out who owes who after shared expenses Add up what each person paid, divide by the people sharing, and subtract. Four friends and five expenses settle in 3 payments instead of 6 pairwise debts.