How tipping works
When you tip, you multiply the bill amount by the tip percentage to get the tip amount, then add it to the original bill to get the total. For a $60 bill with a 20% tip:
- Tip: $60 × 0.20 = $12.00
- Total: $60 + $12 = $72.00
When splitting, the total is divided equally by the number of people. Two people splitting that $72 total each pay $36 — which includes $6 each in tip.
Tipping conventions by situation
Sit-down restaurants (US): 18–20% is the baseline expectation for decent service. The 15% floor that was standard in the 1980s hasn’t kept pace with inflation, so treating 15% as the new floor and 20% as the standard is fairer to servers, most of whom earn well below minimum wage before tips.
Fast casual and counter service: Tipping is increasingly expected at the point-of-sale screen, but it is genuinely optional. If there is no table service, tipping $1–2 or choosing “no tip” is both acceptable.
Delivery: $3–5 minimum, or 15–20% of the order total — whichever is more — is appropriate. Delivery workers often drive their own vehicles and cover fuel costs. Bad weather, distance, and complex orders all justify tipping higher.
Bars: $1–2 per drink for simple orders (draft beer, well drinks); 20% for craft cocktails or when running a tab.
Outside the US: In the UK, 10–12.5% is common; service charges are often already included — check before adding more. In France, service is included by law; small rounding up is appreciated but not required. In Japan, tipping is considered rude and may be refused.
Example: dinner for four
A table of four runs up a $180 bill at a restaurant. The service was good, so the group decides on 20%.
- Tip: $180 × 0.20 = $36.00
- Total: $180 + $36 = $216.00
- Per person: $216 ÷ 4 = $54.00 (of which $9 is tip)
If one person had a significantly smaller order, the fairest approach is to have each person pay their own subtotal and then split the tip proportionally. But for most restaurant meals where everyone ordered similar amounts, the equal split keeps things simple.
Pre-tax vs post-tax tipping
Tipping on the pre-tax subtotal is the technically correct approach — you are rewarding service, not the government’s cut. On a $60 meal with 8% sales tax, tipping 20% on the subtotal gives a $12 tip; tipping 20% on the $64.80 post-tax total gives a $12.96 tip. The $0.96 difference matters little in practice, and most people tip on whichever number is easiest to read on the check. For other percentage questions (discount, markup, percent change), the percentage calculator covers the general case.