How to calculate a tip
Multiply the bill by the tip percentage and divide by 100: $86.40 × 20 ÷ 100 = $17.28. In your head:
- 10%: move the decimal point one place left: $8.64.
- 20%: double the 10% figure: $17.28.
- 15%: 10% plus half of it: $8.64 + $4.32 ≈ $12.96.
Tipping before or after tax
Some people tip on the total, others on the amount before tax. On a $86.40 check that includes $6.40 of tax, a 20% tip is $17.28 on the total or $16.00 on the $80.00 before tax. Enter the tax from the check and tick the box to tip on the pre-tax amount.
Splitting the bill
Divide the total with tip by the number of people. When it does not divide evenly to the cent, the calculator rounds each share up so the shares always cover the bill. Rounding each share up to a whole dollar adds a little to the tip: split three ways, $86.40 with a 20% tip becomes $35.00 each, a $18.60 tip (21.5%).
Tips on common bill amounts
Tip by bill amount and percentage
| Bill | 15% | 18% | 20% | 22% | 25% |
|---|---|---|---|---|---|
| $20.00 | $3.00 | $3.60 | $4.00 | $4.40 | $5.00 |
| $40.00 | $6.00 | $7.20 | $8.00 | $8.80 | $10.00 |
| $50.00 | $7.50 | $9.00 | $10.00 | $11.00 | $12.50 |
| $75.00 | $11.25 | $13.50 | $15.00 | $16.50 | $18.75 |
| $100.00 | $15.00 | $18.00 | $20.00 | $22.00 | $25.00 |
| $150.00 | $22.50 | $27.00 | $30.00 | $33.00 | $37.50 |
| $200.00 | $30.00 | $36.00 | $40.00 | $44.00 | $50.00 |
Why tips matter to servers
Under federal law, an employer may pay a tipped employee a cash wage as low as $2.13 an hour and count tips toward the rest of the federal minimum wage of $7.25; if tips fall short, the employer must make up the difference (U.S. Department of Labor: tipped employees). Many states set higher minimums for tipped workers. Customs for how much to tip vary by service and place; the calculator lets you choose any percentage.
Methodology and testing
Tip = bill (or bill before tax) × percentage, rounded to the cent; each share = total ÷ people, rounded up to the cent. Automated tests check hand-worked examples, that shares always cover the total, that rounding up to a dollar never charges less, and the pre-tax option. How we build and test calculators.
Sources
- Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA), U.S. Department of Labor, Wage and Hour Division. An employer must pay a tipped employee a cash wage of at least $2.13 an hour and may count tips toward the $7.25 federal minimum wage, making up any shortfall.
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