What a tip is actually for
A tip is a voluntary payment on top of the bill, given to the people who served you. In many countries, especially the United States, tipped workers such as servers and bartenders are paid a lower base wage, and tips make up a real part of their income. In other places, service is included in the price or tipping is simply a way to say thank you for good service, and the expected amount is much smaller.
Before you calculate anything, check whether service is already included — the bill or menu will usually say so. If a service charge is already on the bill, an extra tip is optional, and adding a full percentage on top means you are tipping twice.
The basic formula, in one line
The tip is the bill multiplied by the tip percentage, and the total is the bill plus the tip. On a $60 bill with a 20 percent tip, the tip is $60 × 0.20 = $12, and the total is $72. If you prefer to work with the total directly, multiply the bill by 1.20 instead: $60 × 1.20 = $72, and the tip is the difference.
A quick way to estimate 20 percent without a calculator is to move the decimal point one place left to find 10 percent, then double it. On an $86 bill, 10 percent is $8.60, so 20 percent is about $17.20. For 15 percent, find 10 percent and add half of it again: $8.60 + $4.30 = $12.90. These shortcuts are handy, but a calculator is more reliable when the bill is large or the group is splitting.
What percentage should you leave?
In the United States, 15 to 20 percent is the usual range for table service, with 18 to 20 percent now the most common for good service and 15 percent for service that was simply adequate. For takeaway orders, a small tip or none at all is normal, since nobody served you at a table. For delivery, the tip usually covers the driver’s time and fuel, so a flat amount or a percentage both work, and bad weather is a fair reason to be more generous.
In much of Europe, rounding up the bill or leaving 5 to 10 percent is normal, and in some countries tipping is not expected at all. In the United Kingdom, 10 to 15 percent is common when service is not included. Follow local custom where you are, tip more for genuinely good service, and tip less — but still something — when the service was poor.
How to split the bill fairly
The fairest split is rarely an equal split. If one person ordered a starter, a main and two drinks while another had a salad and water, dividing the total equally means the light eater subsidises the heavy eater. The fair method is to work out each person’s share of the food and drink, add the tip on that share, and then add tax on that share too. That is exactly what a tip calculator with a split option does for you.
When everyone ordered roughly the same amount, an equal split is fine and much simpler: divide the total, including tip, by the number of people. On a $120 total split four ways, each person pays $30. If the tip was 20 percent, each person’s share of the tip is $5.
Common mistakes to avoid
The most common mistake is tipping on the total after tax instead of before it. Tax is not service, so the tip is normally calculated on the pre-tax amount. On a $100 meal with $8 tax, a 20 percent tip is $20 on the pre-tax bill, not $21.60 on the total.
Other mistakes are easy to make: forgetting that a service charge is already included, tipping on a discounted total when the service was for the full meal, and letting one person pay the whole tip while the rest only cover their food. Agreeing the method before the bill arrives — who pays what, and whether the tip is included — avoids all three, and it takes about ten seconds.
Try it yourself
Use the free Tip Calculator to work out the tip, the total, and each person’s share in seconds. Enter the bill, choose a percentage, add the number of people splitting, and check the per-person amount before anyone reaches for their wallet.
Try the related tools
Try the Tip Calculator on Daily Tools. Try the Percentage Calculator on Daily Tools. Try the EMI Calculator on Daily Tools.
Frequently asked questions
What is a standard tip percentage?
In the United States, 15 to 20 percent is standard for table service, with 18 to 20 percent the most common for good service. In much of Europe, 5 to 10 percent or rounding up is normal, and in some countries tipping is not expected.
Should I tip on the bill before or after tax?
Tip on the pre-tax amount. Tax is not part of the service, so the tip is normally calculated on the food and drink total before tax is added.
How do I split a bill fairly between friends?
Work out each person’s share of the food and drink, then add the tip and tax on that share. If everyone ordered about the same, divide the total including tip equally by the number of people.