How to calculate a tip
A tip is a plain percentage of the bill:
tip = bill × (percentage ÷ 100)
On a $45 bill, a 10% tip is $4.50 and an 18% tip is $8.10. Whether you calculate on the pre-tax or post-tax total is a matter of local convention; in the United States either is considered acceptable, and the difference is usually under a dollar.
The mental shortcut
Find 10% by moving the decimal point one place left, then build from there. On an $86 bill, 10% is $8.60, so 15% is $8.60 + $4.30 = $12.90 and 20% is $17.20. Almost every tip you will ever need is a combination of 10%, half of 10%, and double 10%.
| You want | Method from 10% | On a $86 bill |
|---|---|---|
| 5% | Half of 10% | $4.30 |
| 10% | Move the decimal point | $8.60 |
| 12.5% | 10% plus a quarter of it | $10.75 |
| 15% | 10% plus half of it | $12.90 |
| 18% | Double 10%, minus a fifth of 10% | $15.48 |
| 20% | Double 10% | $17.20 |
| 25% | Double 10%, plus half of 10% | $21.50 |
Splitting the bill
The simple case is one division: add the tip to the bill, then divide by the number of people.
each person pays = bill × (1 + tip ÷ 100) ÷ people
A $140 bill with a 18% tip is $165.20, which across five people is $33.04 each. Rounding each share up to the next whole unit is the usual way to avoid the total coming up short — five people paying $34 covers the bill with $4.80 to spare, which is generally the intention.
Splitting unevenly
When people ordered very differently, splitting the tip in proportion to each person's subtotal is fairer than splitting it equally, and it is one multiplication: everyone pays their own items times the same factor.
your share = your items × (1 + tip ÷ 100)
On a table where one person ordered $18 and another $62, an 18% tip means they pay $21.24 and $73.16. Splitting the tip equally instead would have the cheaper diner subsidising the more expensive one by about $4.
Card machines that offer tip percentages often calculate them on the total including tax and any service charge. On a large bill that can be several units more than you intended — check the base figure the machine is using before accepting a suggested percentage.
Tipping customs around the world
Tipping norms vary widely, and over-tipping in a country that does not expect it can be as awkward as under-tipping in one that does.
| Country | Restaurant norm | Notes |
|---|---|---|
| United States | 15–20% | Expected; staff wages assume it |
| Canada | 15–20% | Similar to the US |
| United Kingdom | 10–12.5% | Often already added as a service charge |
| Ireland | 10–15% | Common in restaurants, rare in pubs |
| France | Rounding up | Service is included by law |
| Germany | 5–10% | Round up to a convenient figure |
| Netherlands | 5–10% | Rounding up is normal |
| Italy | 0–10% | A cover charge often replaces the tip |
| Spain | 0–10% | Small change is normal |
| Portugal | 5–10% | Optional, usually rounding up |
| Brazil | 10% | Usually printed on the bill |
| Mexico | 10–15% | Expected in restaurants |
| Japan | None | Tipping can cause offence |
| China | None | Not customary outside tourist hotels |
| Australia | 0–10% | Optional, for good service |
| New Zealand | 0–10% | Optional, for good service |
Always check the bill before adding a tip — a service charge may already be included, in which case an extra gratuity is entirely optional.
Service charge is not the same as a tip
A service charge is a line on the bill set by the restaurant; a tip is money you choose to add. In several countries a service charge is legally part of the bill and you are paying it whether or not the service was good. Where a discretionary service charge has been added, the percentage on the card machine is usually calculated on top of it, which is how a "15%" tip quietly becomes 27% of the food.
Beyond restaurants
Common ranges elsewhere in the United States are $1–2 per drink at a bar, 15–20% for taxis, $2–5 per bag for hotel porters, and 15–20% for hairdressers. These are conventions rather than arithmetic, but the same 10%-and-scale method gets you there.
How to calculate a tip
- Enter the bill total. Type the amount of the bill into the base field.
- Enter the tip percentage. Type the percentage you want to leave, such as 15 or 20.
- Read the tip amount. The result is the gratuity. Add it to the bill for the total, then divide by the number of diners to split it.
- Check against the bill. Confirm no service charge has already been added, since a percentage on top of one costs considerably more than it looks.
Frequently Asked Questions
- How much is a 20% tip on $50?
- $10. Take 10% of the bill ($5) and double it.
- Should I tip on the pre-tax or post-tax amount?
- Either is acceptable in the US. Tipping on the pre-tax subtotal is the stricter convention and costs slightly less.
- What if a service charge is already on the bill?
- Then the tip has been collected for you. Anything extra is discretionary and usually reserved for exceptional service.
- How do I split a bill with a tip between four people?
- Multiply the bill by 1 plus the tip as a decimal, then divide by four. A $120 bill at 18% is $141.60, or $35.40 each.
- Is it fair to split the tip equally when orders differed?
- It costs the lighter eaters more. Multiplying each person's own subtotal by the same factor keeps everyone's tip proportional to what they ordered.
- What is the fastest way to work out 15% in my head?
- Move the decimal point one place left for 10%, halve that for 5%, and add the two. On a $64 bill: $6.40 + $3.20 = $9.60.
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