Article — Tip Calculator
Tip calculator: how much to tip and how to split the bill
A 20% tip is the modern US standard for restaurant table service. The math is simple: multiply the bill by 0.20 and add the result. A $50 bill at 20% means $10 in tip and a $60 total. The calculator at the top of this page handles the arithmetic for any bill, any percentage, and any number of people splitting the check.
What is less simple is when to tip what, whether to tip on pre-tax or post-tax amounts, how to handle automatic gratuity, and what to do in countries where tipping is rare or rude. This article covers the conventions for each.
How much should you tip?
For table service in the US, 20% is the floor for good service and 25% rewards exceptional service. 18% is the minimum that does not send a message. Anything below 15% is read as a complaint. If service was genuinely bad, the conventional advice is to talk to the manager rather than reduce the tip — the server's wage may depend on it.
Tipping norms have crept up over the past two decades. In the 1980s, 15% was the standard. By the 2000s, the floor moved to 18%, and by the 2020s the standard is 20%. Point-of-sale terminals from Square and Toast prompt customers with options starting at 18%, sometimes 22%, which has accelerated the drift. Pew Research found that 72% of Americans consider restaurant tipping mandatory, while 40% say tipping culture has gotten out of control.
15% Below standard, sends a message18% Acceptable for OK service20% Standard, good service22-25% Exceptional service or generousPre-tax vs. post-tax tip
Etiquette experts say to tip on the pre-tax subtotal, because sales tax does not go to the server. In practice, most people tip on the post-tax total because the bill prominently displays it and the math is faster. Both are accepted.
The difference is small in low-tax states and meaningful in high-tax cities. On a $100 bill in California at 8.625% sales tax, the pre-tax tip at 20% is $20 and the post-tax tip is $21.73 — a difference of $1.73. In New York City at 8.875%, the gap is $1.78. In Oregon, where sales tax is zero, there is no difference.
Point-of-sale terminals usually compute their tip suggestions on the post-tax amount, which slightly inflates server tips relative to the etiquette-correct calculation. Some terminals offer custom tip entry; using it is the easiest way to control whether you tip on pre-tax or post-tax.
US restaurants often add an automatic 18% gratuity for parties of 6 or more. The added line is usually called "gratuity" or "service charge." If the bill already includes it, do not add a second tip on top. Many people miss the line and tip twice. The mandatory charge should be disclosed on the menu, but enforcement varies.
Splitting the bill
The standard way to split: add the tip to the bill, then divide the total by the number of people. A $100 bill at 20% tip is $120; four people split it at $30 each. The calculator at the top of this page also shows each person's share of the tip alone, which helps if the group is using a mix of cards and cash.
Itemized splits get more complex when people ate different things. Apps like Splitwise and Tab handle the per-item math; this calculator covers the equal-split case, which is the most common. If you need an itemized split, total each person's items separately, calculate their proportional share of the tax and tip, and have each person pay their own share.
An older convention in the US: men paying for a date or the host paying for guests. Modern norms have shifted toward equal splits or splits by income, with the person who suggested the venue often picking up the tab. None of these conventions is universal.
Tipping by service type
Restaurant tipping is the most familiar case, but tipping norms exist for a dozen other services. Here is the modern US range for each:
- Restaurant (sit-down) = 18–25%, 20% standard
- Bar = $1–2 per drink, or 18–20% of tab. More for cocktails than beer
- Food delivery = 15–20%, minimum $3–5. More in bad weather
- Takeout = 0–15%, optional. Has become more common since 2020
- Hair salon / barber = 15–25%, often cash to the stylist
- Taxi / Uber / Lyft = 15–20%. Rounding up is fine on short rides
- Hotel housekeeping = $2–5 per night, left daily not at checkout
- Hotel bellhop = $1–2 per bag
- Valet parking = $2–5 on pickup (not drop-off)
- Spa / massage = 15–20%
- Coffee counter = 0–15%, fully optional
Food delivery deserves a note. The "delivery fee" charged by Uber Eats, DoorDash, and Grubhub usually does NOT go to the driver — it is platform revenue. The tip is the driver's compensation for the trip beyond the small base rate they receive. Drivers in major cities can lose money on a delivery with no tip after gas and time costs.
Tipping around the world
The US is unusual in how heavily tipping factors into service-industry wages. Most of the world either includes service in the menu price or treats tipping as a small optional gesture, not a structural part of pay.
Canada follows US norms closely at 15–20%. UK and continental Europe expect 5–15% or a rounded-up bill, often only when service is good. Australia and New Zealand have no tipping culture in casual settings, though high-end restaurants may receive 10%. East Asia largely does not tip: in Japan and South Korea, leaving cash on the table can be read as condescending toward the worker, who is paid a regular wage and treats service as a professional standard.
In Japan, the concept of omotenashi — wholehearted hospitality — treats excellent service as a baseline professional duty, not a behavior to incentivize with cash. Leaving a tip implies the worker is poorly paid and needs charity, which insults both the worker and the employer. Tourists who try to leave money are typically chased down the street and given it back.
Why tipping in the US is structural, not optional
The federal minimum wage for tipped employees in the US is $2.13 per hour. It has been unchanged since 1991. The full federal minimum is $7.25 per hour. The expectation is that tips will make up the difference. If they do not, the employer is legally required to top up the difference, but enforcement is weak and many tipped workers depend on tips for the bulk of their take-home pay.
Seven US states (California, Oregon, Washington, Nevada, Montana, Minnesota, Alaska) and the District of Columbia have eliminated the tipped minimum wage and pay the full state minimum. In these states, tipping is still customary at standard levels, but the structural pressure is lower because the wage floor is higher.
The 1991 freeze on the federal tipped minimum is one reason tipping in the US is socially mandatory in ways it is not elsewhere. The tip is not a discretionary thank-you; it is, in many states, the server's actual paycheck. The Richmond Federal Reserve has documented this history as part of the broader economic story of service-sector wages in America.
Mental math for common tip percents
20% tip: Move the decimal point one place left (that gives you 10%), then double it. $43.50 bill: 10% = $4.35, doubled = $8.70.
15% tip: Take 10% and add half of it. $43.50: 10% = $4.35, plus half ($2.18) = $6.53.
18% tip: Take 20% and subtract 10% of that 20%. $43.50: 20% = $8.70, minus 10% of $8.70 ($0.87) = $7.83. Or just round 18% to 20% — the $0.87 difference rarely matters.
25% tip: Take 10%, multiply by 2.5. $43.50: 10% = $4.35, × 2.5 = $10.88. Or take a quarter of the bill directly: $43.50 / 4 = $10.88.
In high-tax states (California, New York, Illinois), the doubling-the-tax shortcut works. Sales tax around 8% means double the tax = roughly 16% tip. Triple it for 24%. Quick but only works in states with around 8% sales tax — not in low-tax states like Oregon or Alaska.
Common tipping mistakes
Tipping twice when gratuity is automatic. Parties of 6+ often see 18% auto-gratuity added. Always scan the bill for "gratuity" or "service charge" before adding more.
Tipping on the tax-inclusive total in low-tax states. Harmless. In high-tax states (8% and up), this slightly overshoots etiquette but is widely accepted.
Tipping aggressively at counter service. The 18–30% prompts on Square terminals are designed for table service. Counter service tipping is optional. Choosing "no tip" or a custom small amount is fine.
Forgetting to tip the housekeeper. Hotel housekeeping is one of the most under-tipped roles in US service. Leave $2–5 per night, daily, with a note. Tipping at checkout often means the person who cleaned your room earlier in the stay never receives it.
Tipping in countries where it is rude. Japan and South Korea top the list. When in doubt, look up local norms before traveling.
Some restaurants now add a "service charge" of 18–22% in lieu of tipping. Unlike a tip, a service charge is the restaurant's revenue, not a direct payment to the server. The restaurant decides how to distribute it. Read the bill: if a service charge is included, additional tipping is optional. If it is not included, tip normally.