Calculating a tip at the table shouldn’t require complex mental math. This tip calculator does it instantly: enter the bill amount, select a percentage, and see the tip amount and total at a glance—as well as each person’s share if the bill is being split. Whether at a restaurant, for a delivery service, or at the hair salon, the simple formula remains the same; this page explains exactly how it works.
How to calculate the tip
The calculation performed by any tool of this type is based on a three-step formula: multiply the bill amount by the tip percentage to find the tip value; add that amount to the bill to get the total; and finally, divide that total by the number of people if the bill is being shared.
- Tip amount = Bill amount × (Tip percentage ÷ 100)
- Total amount = Bill amount + Tip amount
- Amount per person = Total amount ÷ Number of people
Example: For a $50 bill and an 18% tip, the calculation is as follows: $50 × 0.18 = $9.00 tip, resulting in a total of $59.00. If the bill is split among three people, each person pays $19.67.
What is the appropriate tip percentage?
Tipping customs vary by service type and region, but the following general guidelines apply to full-service restaurants in the United States:
- 15%: acceptable for average, unobtrusive service
- 18–20%: the standard for good service; the most common range
- 20–25%: generous, for excellent or exceptional service
- 10% or less: generally for poor service; however, many customers still leave at least 15% and address issues directly with the staff
For other services, typical ranges differ: delivery drivers usually expect between 15% and 20% (or at least $3–$5 for short trips); leaving 10% to 15% is common for ridesharing services (like Uber or Lyft); and hairstylists—like restaurant staff—receive between 15% and 20%.
Example tip calculation: $85 restaurant bill
Here is the breakdown for an $85 bill split among four people (with a 20% tip):
- Tip amount: $85 × 0.20 = $17.00
- Total bill: $85 + $17.00 = $102.00
- Amount per person: $102.00 ÷ 4 = $25.50
This is precisely the type of calculation the tool above performs automatically; there is no need to calculate the percentage or the split manually. This is especially convenient if the group size or tip percentage changes during the conversation.
Tipping: before or after tax?
In the United States, most people calculate the tip based on the pre-tax subtotal rather than the total amount including sales tax, as the tax portion does not reflect the value of the service provided. However, calculating the tip on the final amount (including tax) is not incorrect; the difference is usually minimal, and some prefer the simplicity of using the total listed amount rather than calculating the pre-tax subtotal separately.
Tipping etiquette by service type
Standard percentages vary depending on the situation:
- Restaurants and bars: 18% to 20% of the pre-tax bill is the norm for table service; conversely, tipping is generally not expected at self-service establishments or “fast-casual” restaurants, although a jar for loose change is often available.
- Food delivery (DoorDash, Uber Eats, Grubhub): 15% to 20% of the order total or a minimum of $3 to $5, especially for small orders or in bad weather; delivery fees charged by the app are separate from the tip for the driver and do not count as a tip.
- Ridesharing services (Uber, Lyft): 10% to 15% is standard, or even more for exceptional service or a complicated route.
- Hair salons and barbershops: 15% to 20% of the service cost; if multiple people are involved (washing, coloring, cutting), the tip is usually split among them or given individually.
- Hotel housekeeping: $2 to $5 per night; it is preferable to leave the money daily rather than paying a lump sum upon checkout.
Are tips considered taxable income?
Yes: in the United States, tips are considered taxable income for the recipient, whether paid in cash or by card. Employees who receive tips are required to report them to their employer; this income is subject—just like regular wages—to federal income tax, as well as Social Security and Medicare contributions. You can find detailed information regarding tip reporting requirements directly from the IRS.
This information concerns the recipients of the tips but does not affect how you, as a customer, calculate or pay a tip.
If you wish to perform other types of percentage calculations beyond those related to tipping, please note that our percentage calculator handles any such problem—whether involving discounts, increases, or percentage changes—with the same speed and ease as this tip calculator.
How much should I tip at a restaurant?
In the United States, it is customary to leave between 18% and 20% of the bill amount (pre-tax) for good service; 15% is appropriate for average service, and 20% to 25% for excellent service.
Should delivery fees be included when calculating the tip?
No. Delivery fees charged by apps like DoorDash or Uber Eats go to the platform, not the delivery driver; the tip should be paid separately based on the order total (generally 15% to 20%, or a minimum of $3 to $5).
Should I calculate the tip before or after tax?
Most people calculate the tip based on the pre-tax subtotal, although it is also common to calculate it based on the final amount including tax, as the difference is minimal.
How do I split the tip among several people?
Add the tip to the bill amount and divide the total by the number of people; this tip calculator automatically splits the amount once you enter the group size.
Are tips subject to tax?
Yes. In the United States, tips are considered taxable income and—just like regular wages—are subject to federal income tax, as well as Social Security and Medicare taxes.