Algorithm Design and Debugging for a Monthly Budget
Application
Weslay Machoka Kangwana
University of the People
Unit 7 Assignment
March 13, 2026
Designing algorithms is a fundamental skill in programming because it allows developers
to create logical steps for solving real-world problems. In this scenario, the goal is to
develop an algorithm for a finance application that calculates a user’s monthly budget by
considering income, fixed expenses, and variable expenses. The algorithm must use
sequencing, conditional selection, and iterative loops to produce an accurate calculation.
Additionally, debugging techniques must be applied to detect and correct potential logical
errors.
Monthly Budget Calculation Algorithm
The algorithm begins with a sequence of steps that prompt the user to input necessary
financial information. These steps ensure that the application collects all required data
before performing calculations.
Step-by-Step Algorithm
1. Start the program.
2. Prompt the user to enter their monthly income and store it in a variable called
monthlyIncome.
3. Prompt the user to enter total fixed expenses such as rent, utilities, insurance, and loan
payments. Store the value in fixedExpenses.
4. Initialize a variable called variableExpensesTotal to 0.
5. Ask the user how many variable expenses they want to enter and store the number in
numExpenses.
6. Use an iterative loop to collect variable expenses:
FOR each expense from 1 to numExpenses
Prompt user to enter variable expense amount
Add the amount to variableExpensesTotal
END FOR
7. Calculate total expenses:
totalExpenses = fixedExpenses + variableExpensesTotal
8. Use conditional selection to analyze the financial situation:
IF totalExpenses > monthlyIncome
Display a warning that expenses exceed income.
ELSE IF totalExpenses equals monthlyIncome
Display that the budget is balanced.
ELSE
Display that there is remaining budget available.
END IF
9. Calculate remaining budget:
remainingBudget = monthlyIncome - totalExpenses
10. Display the monthly income, total fixed expenses, total variable expenses, and
remaining budget.
11. End the program.
This algorithm demonstrates sequencing by following a logical order of operations from
input collection to calculation and output. The conditional statements evaluate whether
the user's expenses exceed their income, helping users make better financial decisions.
The iterative loop allows the system to handle multiple variable expenses efficiently
without repeating code manually.
Debugging Logical Errors in the Algorithm
During implementation, logical errors may occur that lead to incorrect calculations of the
remaining budget. Unlike syntax errors, logical errors do not stop the program from
running but instead produce incorrect results. To identify and fix such issues, several
debugging techniques can be applied.
The first technique is manual code tracing, also known as desk checking. In this process,
the programmer reviews each step of the algorithm and manually calculates expected
outputs using sample input values. For example, if the user enters an income of 3000
dollars, fixed expenses of 1500 dollars, and variable expenses totaling 800 dollars, the
correct remaining budget should be 700 dollars. If the program produces a different
result, the developer can trace where the incorrect calculation occurs.
Another debugging method is the use of print statements or logging. Developers can
temporarily insert statements within the code to display intermediate values of variables.
Printing values such as variableExpensesTotal, totalExpenses, and remainingBudget
helps verify whether each calculation step is functioning correctly.
A third debugging technique involves using integrated development environment
debugging tools such as breakpoints and step execution. Breakpoints pause the program
at a specific line, allowing the programmer to examine variable values in real time. Step-
by-step execution allows developers to observe how the algorithm processes each
instruction and identify where incorrect logic occurs.
Logical errors may arise due to mistakes such as forgetting to reset
variableExpensesTotal, incorrectly summing expenses, or misplacing calculations inside
loops. Once the issue is identified, the programmer can correct the logic and test the
algorithm again using different input values to ensure accuracy.
Conclusion
Algorithm design plays a crucial role in developing reliable software solutions. The
monthly budget algorithm demonstrates how sequencing, conditional selection, and
iteration can be used to manage financial calculations effectively. Additionally,
debugging techniques such as code tracing, logging, and breakpoint analysis are essential
for detecting and correcting logical errors. By combining well-structured algorithms with
systematic debugging practices, developers can ensure that applications provide accurate
and reliable results for users.
References
Downey, A. (2015). Think Python: How to think like a computer scientist (2nd ed.).
O’Reilly Media.
Sebesta, R. W. (2019). Concepts of programming languages (12th ed.). Pearson.