Working out a tip at the end of a meal is simple once you know a couple of shortcuts. This guide covers the basic formula, quick mental methods and how to split the total fairly.
The tip formula
Tip = Bill amount × Tip percentage ÷ 100
Total = Bill amount + Tip (+ tax if not already included)
Mental maths shortcuts
- 10%: move the decimal point one place left. 10% of $64.50 is $6.45.
- 20%: double the 10% figure. 20% of $64.50 is $12.90.
- 15%: take 10% and add half of it. $6.45 + $3.23 = $9.68.
- 18%: take 20% and subtract 2% (one-fifth of 10%). $12.90 − $1.29 = $11.61.
- 25%: divide by 4. 25% of $64.50 is $16.13.
Before or after tax?
Many people tip on the pre-tax subtotal because tax is not part of the service. Others tip on the total for simplicity; the difference is small. Either way, check whether a service charge has already been added to the bill so you do not tip twice.
Worked example: tip and split
Three friends have a meal with an $80.00 subtotal and $6.40 sales tax. They want to leave 18% on the subtotal.
- Tip: $80.00 × 18% = $14.40
- Total: $80.00 + $6.40 + $14.40 = $100.80
- Each person: $100.80 ÷ 3 = $33.60
Splitting unevenly
If people ordered very different amounts, split by what each person ordered instead. Work out each share of the subtotal, then add the same tip and tax percentage to each share. Someone who ordered $40 of an $80 subtotal pays half of the tax and half of the tip.
Rounding
When splitting, round each share up to the nearest cent so the total is covered. Rounding the tip to a whole dollar is a common courtesy and makes the maths easier.
Tipping customs vary
How much to tip, and whether to tip at all, depends on the country and the type of service. In the United States, tipping at sit-down restaurants is customary, while in many other countries service is included in prices or tips are smaller. Check local custom when you travel.
Let the calculator do it
The tip calculator works out the tip, the total and each person’s share in one step. More everyday tools are in daily life calculators.
Frequently asked questions
Move the decimal point one place left to get 10%, then double it. On a $45 bill: $4.50 × 2 = $9.00.
Many people tip on the pre-tax amount; others use the total for simplicity. Both are common.
Add the tip and tax to the subtotal, then divide by the number of people, or split by what each person ordered.
A service charge is often in place of a tip. Check the bill before adding more.
