About the tip calculation
Tipping arithmetic is simple; the confusion is usually about what to tip on and how to split unevenly. This calculates the tip on the bill as entered — if your bill already includes tax or a service charge, decide whether you want to tip on that before entering the figure.
Formula
Tip = Bill × (percent ÷ 100)
Total = Bill + Tip
Per person = Total ÷ number of peopleWorked example
A 1,000 bill with a 15% tip split four ways: the tip is 150, the total is 1,150, and each person pays 287.50.
Frequently asked questions
Should I tip on the pre-tax or post-tax amount?
Convention in the US is to tip on the pre-tax subtotal, though many people simply tip on the total for ease. The difference on a typical bill is small. Enter whichever figure you want the percentage applied to.
What if a service charge is already included?
Then a tip is generally not expected on top, particularly outside the US. Check the bill for a line marked service charge or gratuity before adding more.
How much should I tip?
It varies enormously by country. Around 15 to 20% is standard for restaurant service in the US, roughly 10 to 12.5% in the UK, and in much of East Asia and continental Europe tipping is minimal or already included.
Sources
- Standard percentage arithmetic