Tip Calculator
Calculate tips and split bills easily. Features custom tip percentages, bill splitting, and rounding options.
Everyday Calculators
Understanding Tipping
The Purpose of Tipping
Tipping is a voluntary payment given to service workers in addition to the basic price of a service. It serves as a way to acknowledge and reward good service while supplementing the income of service professionals. In many countries, particularly the United States, tipping has evolved from an optional bonus to a social norm that makes up a significant portion of service workers' earnings.
Standard Tipping Rates
Tipping customs vary by country, service type, and quality of service. In the United States, where tipping is most entrenched, standard rates include:
| Service Type | Standard Tip | For Exceptional Service |
|---|---|---|
| Restaurants | 15-18% | 20-25% |
| Food Delivery | 10-15% | 15-20% |
| Taxi/Rideshare | 15% | 20% |
| Hotel Housekeeping | $2-5 per night | $5-10 per night |
| Hair Stylists | 15-20% | 20-25% |
| Bartenders | $1-2 per drink | 20% of tab |
Note: These are general guidelines for the United States. Customs may vary by region, establishment type, and other factors.
Global Tipping Customs
Tipping practices vary dramatically around the world:
North America
Tipping is strongly expected in the US and Canada, typically 15-20% in restaurants. Service workers often receive lower base wages with the expectation that tips will supplement their income.
Europe
In many European countries, a service charge is often included in the bill. Additional tipping is appreciated but more modest (5-10%). In some countries like France, service (15%) is legally included in prices.
Asia
Tipping is not traditional in many Asian countries and may even be considered rude in places like Japan. However, in tourist areas, tipping has become more accepted. In China, high-end establishments may add a service charge.
Australia/New Zealand
Tipping is not customary as service workers receive relatively high minimum wages. Small tips for exceptional service are appreciated but not expected.
The Math of Tipping
Basic Tip Calculation
The basic formula for calculating a tip is:
Tip Amount = Bill × Tip PercentageFor example, a $50 bill with a 15% tip would be:
$50 × 0.15 = $7.50
Bill Splitting
When splitting a bill, divide the total (including tip) by the number of people:
Per Person = (Bill + Tip) ÷ Number of PeopleWith a $50 bill, $7.50 tip, and 4 people:
($50 + $7.50) ÷ 4 = $14.38 per person
Quick Estimation
For quick mental math:
10% tip: Move decimal point left one place
15% tip: 10% + half of that amount
20% tip: Double the 10% amount
Example: For a $50 bill, 10% is $5, so 20% is $10
Special Tipping Situations
Pre-Tax vs. Post-Tax
There's ongoing debate about whether to calculate tips based on the pre-tax or post-tax bill amount. While technically you could tip on the pre-tax amount, many people simplify by tipping on the total bill.
Example: On a $100 bill with $8 tax, a 15% tip would be:
- Pre-tax basis: $100 × 15% = $15.00
- Post-tax basis: $108 × 15% = $16.20
- Difference: $1.20
Large Groups & Automatic Gratuity
Many restaurants add an automatic gratuity (typically 18-20%) for large groups. This policy usually applies to parties of 6-8 or more and should be clearly stated on the menu.
When automatic gratuity is added:
- Check your bill carefully to avoid double-tipping
- Understand that this is not optional (it's a service charge)
- You can still add an additional tip for exceptional service
- Some establishments split this amount among all staff, not just servers
Economic Aspects of Tipping
Tipped Minimum Wage
In the United States, federal law permits employers to pay tipped employees a lower minimum wage (as low as $2.13 per hour) as long as tips bring their total hourly earnings to the standard minimum wage. This system, known as the "tip credit," effectively transfers part of the wage burden from employers to customers.
Some states require the full minimum wage before tips, while others follow the federal tipped minimum wage. This policy context helps explain why tipping is considered more obligatory in the US than in countries where service workers receive full minimum wages.
Alternative Models
No-Tipping Policies
Some establishments have implemented "hospitality included" models where prices are increased to pay staff higher wages, and tipping is discouraged. These experiments have had mixed results, with some restaurants reverting to traditional tipping due to customer preference and staff turnover.
Service Charges
Fixed percentage service charges (common in Europe) provide more predictable income for staff but may remove the incentive aspect of tipping. When service charges are applied, additional tipping is typically minimal or not expected.
Modern Tipping Considerations
- Digital payment processing: Many payment systems now suggest tip percentages, typically offering 15%, 18%, 20%, or custom options. These systems make tipping more streamlined but may also create pressure to tip in situations where tipping wasn't traditionally expected.
- "Tip creep": The expansion of tipping expectations to new industries and service categories where tipping wasn't previously common, such as counter service, coffee shops, or retail.
- Tip pooling: In some establishments, tips are pooled and distributed among all staff (including those who don't directly serve customers), which affects how your tip impacts individual workers.
- Transparency: A growing movement for more transparency about how tips are distributed and whether they actually benefit the workers as intended.
- Customer discomfort: Studies show many customers feel uncertain about tipping norms and may experience anxiety about tipping too little or too much, especially in unfamiliar settings.
- Digital tips in shared economy: Services like Uber, Lyft, and food delivery apps have built tipping into their platforms, extending tipping culture to new service sectors.
Bill Splitting Etiquette
Splitting the bill in group dining situations can sometimes create social tensions. Here are some approaches to consider:
Even Split
- Best when: Everyone ordered similarly priced items
- Advantage: Simple and fast
- Disadvantage: Can feel unfair if spending varied widely
- Tip: Always include the tip when calculating each person's share
Pay for What You Ordered
- Best when: Large price differences in orders
- Advantage: Most equitable approach
- Disadvantage: Can be time-consuming to calculate
- Tip: Don't forget to factor in shared items like appetizers
If you're using the "pay for what you ordered" approach, be sure to account for tax and tip proportionally. Our calculator can help by calculating per-person amounts with proper tip allocation.