To calculate a tip, multiply the bill by the tip percentage written as a decimal. For a 20% tip on an $84 bill, that is $84 × 0.20 = $16.80. In your head, move the decimal point one place left to get 10% ($8.40), then double it for 20%, or add half again for 15% ($12.60).
That covers most restaurant bills. The rest of this guide shows faster mental math for the common percentages, whether to tip on the amount before or after tax, how to split a bill fairly, and what is normal for different services and countries. If you would rather not do any arithmetic at the table, our tip calculator works out the tip, the total and each person’s share in one go.
The tip formula
Tip = bill × tip percentage ÷ 100Total = bill + tipOr skip a step and multiply the bill by 1 plus the percentage: $84 × 1.20 = $100.80 for the total with a 20% tip. This is the same percentage math you use everywhere else, and our guide to calculating percentages goes deeper if you want it. For a general-purpose tool, the percentage calculator works too.
How to calculate a tip in your head
Everything starts with 10%, because 10% is just the bill with the decimal point moved one place to the left. $84.00 becomes $8.40. $47.50 becomes $4.75. Round the bill first if it helps: on $83.60, use $84.
15% tip
Take 10%, then add half of it. On $84: $8.40 + $4.20 = $12.60.
18% tip
Work out 20% and subtract a tenth of that. On $84: 20% is $16.80, a tenth of that is $1.68, and $16.80 − $1.68 = $15.12. If that is too fiddly, round to a number between 15% and 20%: about $15.
20% tip
Take 10% and double it. On $84: $8.40 × 2 = $16.80. This is the easiest one, which is part of why 20% has become a common default in the U.S.
25% tip
Divide the bill by 4. On $84: $21.00.
Here are the results for some typical bills so you can sanity-check yourself.
| Bill | 15% tip | 18% tip | 20% tip |
|---|---|---|---|
| $20 | $3.00 | $3.60 | $4.00 |
| $35 | $5.25 | $6.30 | $7.00 |
| $50 | $7.50 | $9.00 | $10.00 |
| $75 | $11.25 | $13.50 | $15.00 |
| $100 | $15.00 | $18.00 | $20.00 |
| $150 | $22.50 | $27.00 | $30.00 |
| $200 | $30.00 | $36.00 | $40.00 |
Should you tip on the pre-tax or post-tax amount?
Strictly speaking, etiquette guides say to tip on the subtotal before tax, because tax is not part of the service. In practice many people tip on the total because it is the number printed at the bottom, and card terminals often suggest tips based on the after-tax amount.
The difference is small but not zero. Say your subtotal is $120 and you are in New York City, where combined sales tax is 8.875%.
- Tax: $120 × 0.08875 = $10.65, so the total is $130.65
- 20% on the pre-tax subtotal: $24.00
- 20% on the after-tax total: $26.13
Tipping on the total adds $2.13. Neither is wrong. If you want to tip on the pre-tax amount but only have the total in front of you, the tip from net price calculator backs the tax out for you. The sales tax calculator does the same job if you just want to see how much of the bill is tax.
The same logic applies to discounts and coupons. If you used a voucher for $30 off, tip on the price before the discount, because your server did the same work either way. The discount calculator shows the original price if you only know the reduced one.
Splitting the bill and the tip
When a group eats together, there are two common ways to split, and the tip works slightly differently in each.
Equal split
Four friends share a $186 subtotal. Sales tax is 8%, and they agree on a 20% tip on the pre-tax amount.
- Tax: $186 × 0.08 = $14.88
- Tip: $186 × 0.20 = $37.20
- Total: $186 + $14.88 + $37.20 = $238.08
- Each person: $238.08 ÷ 4 = $59.52
Rounding each share up to $60 adds $1.92 to the tip, which servers rarely mind. The split the bill calculator divides any total between any number of people and rounds the shares up for you. Note that it applies the tip to the after-tax amount, so its figure will be slightly higher than tipping on the subtotal.
Split by what each person ordered
If one person had a salad and another had steak and two cocktails, an equal split feels unfair. In that case, multiply each person’s own subtotal by 1 plus the tax rate plus the tip rate. With 8% tax and a 20% tip, that is 1.28.
| Diner | Their items | × 1.28 |
|---|---|---|
| Alex | $52.00 | $66.56 |
| Ben | $38.00 | $48.64 |
| Chris | $61.00 | $78.08 |
| Dana | $35.00 | $44.80 |
| Total | $186.00 | $238.08 |
The shares add up to exactly the same $238.08, and everyone pays tax and tip in proportion to what they ate. Sharing appetizers? Split those evenly first, then add each person’s own items.
Tipping guide by service in the U.S.
Tipping customs in the United States are partly a wage issue. Federal law lets employers pay tipped workers a cash wage as low as $2.13 an hour as long as tips bring them up to the full minimum wage, as the Department of Labor explains on its tipped minimum wage page. Many states require more. That is why skipping the tip at a sit-down restaurant hits a server’s pay directly.
These are common ranges, not rules. Adjust for the quality of service and the local norm.
| Service | Typical tip |
|---|---|
| Sit-down restaurant | 15–20% of the pre-tax bill; 20% or more for excellent service |
| Bartender | $1–2 per drink or 15–20% of the tab |
| Food delivery | 15–20%, with a $3–5 minimum; more in bad weather |
| Takeout or counter service | Optional; 0–10% |
| Hair stylist, barber, nail salon | 15–20% |
| Taxi or rideshare | 15–20% |
| Hotel housekeeping | $2–5 per night, left daily |
| Valet | $2–5 when the car is returned |
Pizza delivery has its own conventions, including extra for long drives and bad weather. The pizza tip calculator suggests an amount and can split it by slices eaten.
If you work in a tipped job, keep in mind that tips are taxable income. The IRS explains how to record and report them on its tip recordkeeping and reporting page, including the newer federal deduction for qualified tips. For how tips change an effective hourly rate, see our guide on converting salary to hourly pay.
Tipping in other countries
Outside North America, tipping is usually smaller and sometimes not expected at all. Service charges are also more common, so check the bill before adding anything.
- Canada: similar to the U.S., 15–20% at restaurants.
- Mexico: 10–15% at restaurants is standard.
- United Kingdom: 10–12.5% if no service charge is on the bill. Many restaurants add a 12.5% “discretionary” service charge.
- France, Italy, Spain: service is included by law or custom. Leaving small change or rounding up is a polite extra.
- Germany and Austria: round up or add 5–10%, and tell the server the total you want to pay rather than leaving cash on the table.
- Japan and South Korea: tipping is not part of the culture and can cause confusion.
- Australia and New Zealand: not expected because wages are higher; 10% for great service is appreciated.
Prices in many of these countries already include VAT, so if you want to tip on the net price, the tip from net price calculator handles that. Converting the bill to your home currency first? The currency converter takes whatever rate your card or bank uses.
Common tipping mistakes
- Tipping twice. Some restaurants add an automatic gratuity for groups of six or more, often 18–20%. Check the bill before adding your own.
- Tipping on a discounted price. Base the tip on what the meal would have cost without the coupon or gift card.
- Trusting the card terminal blindly. Suggested percentages may be calculated on the after-tax total, or start at 20% for counter service where less is normal.
- Getting the decimal wrong. 15% of $84 is $12.60, not $1.26. If the tip looks tiny or huge, recheck where you moved the decimal.
- Forgetting the tip when splitting. Divide the total including the tip, not just the food.
Frequently asked questions
How do I calculate a 20% tip quickly?
Move the decimal point one place to the left to get 10%, then double it. On a $63 bill, 10% is $6.30, so 20% is $12.60.
Is it rude to tip 15%?
No. 15% is still within the normal range for adequate service in the U.S. Many people tip 18–20% for good service, but 15% is not an insult.
Do you tip on alcohol and wine?
Yes, at restaurants the usual practice is to tip on the full pre-tax bill, including drinks. For very expensive bottles, some diners tip a smaller percentage on the wine portion.
How much do I tip if the service charge is already included?
Nothing extra is required. If the service was outstanding, you can leave a little more, but the included charge is the tip.
What is the easiest way to split a tip between friends?
Add the tip to the total first, then divide by the number of people. Rounding each share up to the next whole dollar keeps things simple and slightly generous.
Once you know the 10% trick, every common tip is one quick step away: halve and add for 15%, double for 20%, divide by four for 25%. Decide whether you tip on the pre-tax amount, check for service charges, and split the total rather than the food. Then use the calculators above when the group is large or the bill is in a currency you are not used to.