How does simplify debts work?

In a group of five, debts point in every direction. Simplify works out each person's net position and then matches the largest debtor to the largest creditor until everyone is at zero — which usually turns a dozen small debts into three or four transfers.

Simplifying never changes what anyone owes in total. It only reduces how many times money has to move.

Two rules keep it honest

Currencies never mix. Each currency is simplified on its own, so a dollar debt settles separately from the rupee ones.

You can switch it off. Some groups prefer paying the person they actually borrowed from. Turn simplify off in group settings and you see every pairwise balance instead. The totals are identical either way.