How to use the tip calculator
Copy the numbers off the receipt rather than the card machine's suggestions. The subtotal is the food and drink before tax. Tax, any service charge already added, and other required fees each get their own box so nothing is counted twice.
Then decide what the percentage applies to and how many people are paying. Everything is split equally, so if one person ordered the lobster, you may want to run their share separately.
- Enter the pre-tax subtotal, plus any discount as a money amount.
- Enter the tax from the receipt, and any service charge or fees already on the bill.
- Choose what to tip on: the subtotal after discount, the original subtotal, the subtotal plus tax, or a custom amount.
- Type your tip percentage.
- If a service charge is on the bill, choose whether to add your tip on top or count the charge toward it.
- Enter the number of people paying, pick a rounding option and calculate.
Tip formula and quick table
The tip is the amount you tip on times the percentage. Add it to everything else on the bill for the total, then divide by the number of people. If a service charge counts toward your tip, it's subtracted from the tip amount, and the extra tip never goes below zero.
Here are common percentages on a few bill sizes, all calculated on the amount before tax.
Tip = amount you tip on x tip % / 100Total = subtotal - discount + tax + service charge + fees + tipEach person pays = total / number of people
| Bill before tax | 15% | 18% | 20% | 22% |
|---|---|---|---|---|
| $25 | $3.75 | $4.50 | $5.00 | $5.50 |
| $50 | $7.50 | $9.00 | $10.00 | $11.00 |
| $80 | $12.00 | $14.40 | $16.00 | $17.60 |
| $100 | $15.00 | $18.00 | $20.00 | $22.00 |
| $150 | $22.50 | $27.00 | $30.00 | $33.00 |
Worked example: an $80 dinner for two
Two people have dinner. The subtotal is $80 and the tax is $6.40. An 18% tip on the pre-tax $80 is $14.40. The total comes to $100.80, so each person pays $50.40.
Tip 20% instead and the tip becomes $16, the total $102.40 and each share $51.20.
| Line | Calculation | Amount |
|---|---|---|
| Subtotal | Before tax | $80.00 |
| Tax | From the receipt | $6.40 |
| Tip | $80 x 18% | $14.40 |
| Total | $80 + $6.40 + $14.40 | $100.80 |
| Each person | $100.80 / 2 | $50.40 |
Should you tip on the pre-tax or post-tax amount?
The Emily Post Institute's tipping guide gives restaurant tips as a percentage of the pre-tax bill, and that's the calculator's default. Tax isn't part of the service, so leaving it out is reasonable. Plenty of people tip on the after-tax total because it's the number printed at the bottom, and that's fine too.
The difference is small. On the $80 dinner with $6.40 tax, 18% before tax is $14.40 and 18% after tax is about $15.55. Pick the after-tax option in the calculator if that's how you like to tip.
Tip split calculator for groups
Four friends share a $240 meal with $19.20 of tax. A 20% tip on the pre-tax $240 is $48, so the total is $307.20 and each person owes $76.80. The results show each person's share of the food, tax and tip.
Odd totals don't always divide neatly. Split $100.01 three ways and the exact share is $33.3367. Round each share up to the cent and the group pays $100.02. Round each share up to a whole dollar and it pays $102. The calculator shows that extra as a separate rounding line so nobody mistakes it for tip.
| Rounding | Each person | Group pays | Extra |
|---|---|---|---|
| None | $33.3367 | $100.01 | $0.00 |
| Each share up to the cent | $33.34 | $100.02 | $0.01 |
| Each share up to a whole unit | $34.00 | $102.00 | $1.99 |
| Group total up to a whole unit | $33.67 | $101.01 | $1.00 |
Service charges, discounts and auto-gratuity
Some bills already include a service charge, often for large groups. In the US, the IRS and the Department of Labor treat a compulsory service charge differently from a tip you choose freely. It may not reach your server in the same way. If you want your total to reach a set percentage anyway, choose the option that counts the charge toward it.
On a $100 basis with an $18 service charge and a 20% tip, adding the tip on top gives $38 in total. Counting the charge toward 20% leaves a $2 extra tip. With a discount or coupon, you can tip on the original price, which many people do because the service didn't change.
| Option | Service charge | Extra tip | Combined |
|---|---|---|---|
| Add tip on top | $18.00 | $20.00 | $38.00 |
| Count charge toward 20% | $18.00 | $2.00 | $20.00 |
Sources
These sources cover tipping norms in the US and the difference between tips and service charges.