Tip Calculator

The Tip Calculator calculates the tip amount and total based on the bill amount. When you enter the bill amount and tip percentage, it shows the tip amount, total amount and per person if multiple people are dining together.

This version is more than just a simple calculator. You can leave individual fields blank and the calculator will calculate the corresponding values. For example you can find out what percentage to tip based on the total bill already paid. You can also calculate the amount of tip based on the net bill and add in the sales tax, split the bill in different ways or round up the total for an easy split.

What is a tip?

A tip, also called a "service charge", is an optional amount of money given in addition to the bill to reward service provided. In the United States, tipping is built into the compensation systems for restaurants, bars and delivery services. Federal law sets a minimum wage for tipped workers at $2.13 per hour, which has not changed since 1991. Therefore, giving an appropriate tip is more of an obligation than an option.

A tip is different from a service charge. While you decide the amount of your tip, a service charge is an extra fee that restaurants add on for things like large parties. If there's already a service charge listed on your bill, then it's usually not necessary to give any additional tips.

How to use this calculator.

Enter the bill amount and tip percentage. In restaurants in the United States, it is customary to leave a fifteen to twenty percent tip. Twenty percent is standard for good service. After entering, you will immediately see the tip, total, and per person amounts.

To split the bill amount, set the number of people eating with you. Enable the tax point to calculate the sales tax correctly and enter your local tax rate. Tip is calculated based on the net bill amount while taxes are added to the total. If you enable rounding, then the total or per person amount will be rounded up to the nearest whole number which makes it easier for cash payments and splitting bills.

This calculator can also be used in reverse. If you leave the tip percentage blank and enter the total amount already paid, it will show the corresponding tip percentage. If you leave the bill amount blank and enter a target total amount as well as a tip percentage, it will show the maximum bill amount that can be paid within your budget.

This is how to calculate a tip:

The tip is a certain percentage of the bill amount and the total amount is the bill amount plus the tip.

If you're splitting the bill, divide the total by the number of people eating.

The bill is $86.40 and a tip of 20 percent will be given. If this is split between three people the tip would be $17.28 which is equal to 86.40 multiplied by .20. The total amount is $103.68 which is equal to 86.40 plus 17.28. If the cost is divided equally among three people each person will pay $34.56 of which $5.76 would be for the tip.

The table below shows the individual input parameters and examples.

On what basis is the tip calculated: before or after taxes?

Tipping is usually calculated based on the amount before taxes. This is because the tax goes to the government and not to the business or employees. There are more votes in popular online forums for calculating tips based on the amount before taxes. Although the difference per meal is small, it can add up over the course of a year.

To calculate the tip based on the amount before tax, enter the net amount as the bill amount in this tool and enable the taxes option. Many people prefer to calculate the tip based on the gross total for convenience, which is also a reasonable choice. This tool supports both methods.

Recommended tips according to type of service.

The tipping practice varies according to the type of service. The following table summarizes the usual range in the U.S. and serves as a guideline. You may increase or decrease the tip for particularly good or bad service, but it is rare not to give any tip at all.

Global tipping habits

Tipping is not universal. Some countries expect tipping, some add a service charge to the bill and some consider tipping rude. Research local customs before traveling. A service charge on your bill usually replaces tipping.

This is how to calculate a tip in your head:

A quick method is to start with ten percent. This means moving the decimal point of the bill amount one place to the left. For a bill amount of $26.50, ten percent would be $2.65. Double that amount for twenty percent, which is $5.30. To calculate fifteen percent, add half of the amount for ten percent. So if you add 2.65 and 1.33, you get approximately 3.98. To calculate twenty-five percent, divide the bill amount by four. To find the total amount at once, multiply the bill amount by the number that is one plus the decimal value of the tip percentage. So if you want to give an eighteen percent tip for a bill amount of $26.50, you would multiply 26.50 by 1.18, which gives you $31.27.

Common Misconceptions About Tipping

There are some behaviors to avoid. If you tip on the total bill including tax instead of net, then over time you will pay more. If a tip is automatically calculated and you give an additional tip, then you're paying twice. For groups larger than six people, 18% to 20% tip is usually already included in the bill, so check your bill first. It's unfair to reduce the waiter's tip because of slow food preparation in the kitchen area. Report such problems to the manager. If there are large variations in portion sizes or orders but the bill amount is split evenly, this can lead to conflict. So agree on how to split before ordering.

Recently there have been more places where tipping was not expected before but now displays on the screen will show a suggested tip amount. This trend is often referred to as "tip inflation". It is perfectly acceptable to not tip in self-service, especially take-out. Generosity should be reserved for restaurant service and individual services since the tips are part of those workers' income.