How the tip is worked out
A tip is a percentage of the bill. Turn the percentage into a decimal, multiply, and add the result to the bill.
The calculator rounds the tip half up to the nearest cent (0.005 becomes 0.01), the same way a card machine does. It uses exact decimal arithmetic, so you never get odd results like $5.98 when the answer is $5.99.
Example 1: dinner for two
The bill is $64.50 and you want to leave 20%.
- Tip: 64.50 × 0.20 = $12.90
- Total: 64.50 + 12.90 = $77.40
- Each of two people pays 77.40 ÷ 2 = $38.70
Example 2: tipping before tax
Your receipt shows food of $100.00 plus $8.00 sales tax, so the bill is $108.00. Many US etiquette guides say to tip on the amount before tax.
- Before tax: 108.00 − 8.00 = $100.00
- 18% tip: 100.00 × 0.18 = $18.00
- Total: 108.00 + 18.00 = $126.00
Tipping 18% on the whole $108 would be $19.44. The difference is real but small, so pick whichever you prefer. Choose Amount before tax and type the tax line from your receipt to do it this way.
Example 3: an uneven split
Three friends share a $90.00 bill with a 15% tip. The total is 90 + 13.50 = $103.50, and 103.50 ÷ 3 = $34.50 each, which divides evenly. With a $100.00 total, though, 100 ÷ 3 = 33.333…, and nobody can pay a third of a cent. The calculator shares out the leftover cent, so one person pays $33.34 and two pay $33.33. The shares add up to exactly $100.00.
Rounding options
Splitting a bill in cash is easier with whole numbers. There are two ways to round, and both put the extra money into the tip:
- Round up each share: each person’s share goes up to the next whole amount. A $77.40 total for four people is $19.35 each, which becomes $20 each. The total is $80 and the tip grows from $12.90 to $15.50.
- Round up the total: the whole bill goes up to the next whole amount, so $77.40 becomes $78.00.
The result card shows the real tip percentage after rounding, so you can see that $15.50 on a $64.50 bill is about 24%, not 20%.
Quick tip table
These are the tips on a few common bill sizes. The calculator shows the same table for your own bill.
| Bill | 10% | 15% | 18% | 20% | 25% |
|---|---|---|---|---|---|
| $20 | $2.00 | $3.00 | $3.60 | $4.00 | $5.00 |
| $50 | $5.00 | $7.50 | $9.00 | $10.00 | $12.50 |
| $85 | $8.50 | $12.75 | $15.30 | $17.00 | $21.25 |
| $120 | $12.00 | $18.00 | $21.60 | $24.00 | $30.00 |
A mental shortcut for 20%: move the decimal point one place left to get 10%, then double it. For 15%, take 10% and add half of it again.
Tipping customs differ by country
There is no single right percentage. Customs change from place to place and over time, so treat these as general patterns, not rules:
- United States and Canada: tipping is expected for table service, and 15% to 20% is common. Restaurant workers often earn a lower base wage and rely on tips.
- United Kingdom: many restaurants add a discretionary service charge, often 12.5%. If it is on the bill, you do not need to add more. Since October 2024, UK law requires employers to pass all tips and service charges on to workers in full, under a government code of practice.
- Much of Europe: service is often included in prices. Rounding up or leaving a small amount for good service is common.
- Japan and some other countries: tipping is unusual and can even cause confusion.
Always read the bill first. If it says “service included” or shows a service charge, the tip may already be paid.
Tips and tax
For the person who receives them, tips are usually taxable income. In the US, the IRS expects employees to keep a record of their tips and report them to their employer. Recent federal rules also let some workers deduct part of their qualified tip income, within limits and for a set number of years. Check the IRS pages linked below or ask a tax adviser for your own situation. This calculator only does the arithmetic of the bill; it does not give tax advice.
Related calculators
To check a price after a store discount, use the discount calculator. To add sales tax to a purchase, or pull it out of a receipt, try the sales tax calculator. For any other percentage question, the percentage calculator covers the four basic formulas.