What Is a Tip?
A tip — or gratuity — is an optional extra payment for service. In the US it's effectively expected at restaurants, where servers typically earn below minimum wage on the assumption that tips make up the difference. In other countries the norms vary widely. In Japan, tipping can actually come across as rude.
For this guide: American tipping norms, where the math is worth knowing.
The Formula
Tip Amount = Bill Total × (Tip Percentage ÷ 100)
Total = Bill + Tip Amount
Or as a single multiplier: Total = Bill × (1 + Tip Rate)
A 20% tip: Bill × 1.20. Done.
Real-World Example
Bill: $58.40 before tax.
| Tip % | Tip Amount | Total Paid | |-------|------------|------------| | 15% | $8.76 | $67.16 | | 18% | $10.51 | $68.91 | | 20% | $11.68 | $70.08 | | 22% | $12.85 | $71.25 | | 25% | $14.60 | $73.00 |
The difference between 15% and 25% on this bill is $5.84. To you, not a huge deal. To someone who waited on you for an hour, it's meaningful.
Fast Mental Math (No Calculator Needed)
Forget the formula. Here's how to calculate a tip in your head:
10% shortcut: Move the decimal one place left. $58.40 → $5.84
20% tip: Double the 10%. $5.84 × 2 = $11.68
15% tip: 10% plus half of 10%. $5.84 + $2.92 = $8.76
25% tip: 20% plus half of 10%. $11.68 + $2.92 = $14.60
This gets you within a few cents every time. Close enough — and faster than pulling out your phone.
Splitting the Bill
Four people at a $212 dinner, 20% tip:
Total with tip: $212 × 1.20 = $254.40 Per person: $254.40 ÷ 4 = $63.60
If people want to pay for what they actually ordered, calculate each person's subtotal, then multiply by 1.20 (or whatever tip rate you've agreed on).
The math is easy. The awkward part is when someone who had a $14 salad is splitting 50/50 with the person who had a $45 steak and three cocktails. No calculator solves that problem.
Tipping Norms by Service Type
Different situations have different expectations:
| Service | Typical Tip | |--------------------------|--------------------------| | Sit-down restaurant | 18–22% | | Food delivery | 15–20% ($3 minimum) | | Bartender | $1–2/drink or 15–20% | | Coffee (counter service) | $1–2 or nothing | | Rideshare (Uber/Lyft) | 15–20% | | Hotel housekeeping | $2–5/night | | Hair salon | 15–20% | | Movers | $20–50/person |
Counter-service tipping is genuinely a gray area. The iPad flipping around asking for 20% on a drip coffee is a business decision — not a social contract. Tipping 18–20% at a sit-down restaurant where someone took your order, brought your food, refilled your water, and handled your table for 90 minutes is a different situation entirely.
Three Things Worth Knowing
1. Tip Pre-Tax When Possible
Tipping on the pre-tax amount is technically more correct — the tax is the government's cut, not the server's. On a $100 meal in a city with 9% tax, 20% on pre-tax vs. post-tax is about a $1.80 difference. Not dramatic, but it's your money.
Most people just tip on whatever the receipt shows. That's fine too.
2. Auto-Gratuity Is Already a Tip
Many restaurants add 18–20% gratuity automatically for parties of 6 or more. Always check your bill before adding another tip on top. It happens more often than you'd think.
3. Bad Service Gets a Smaller Tip — Not No Tip
Unless the server was genuinely awful (not just slow on a busy night), a 10–12% tip is a more appropriate signal than $0. No tip looks the same as a walk-out or a forgotten table to management. If you had a genuinely bad experience, leaving 10% and mentioning the issue to the manager communicates more.
Tipping at Special Events and One-Off Services
Restaurants and rideshares have clear norms. A lot of other situations — weddings, home services, personal care — are genuinely murky. Here's what's generally expected:
| Service | Typical Tip | |---------|-------------| | Wedding photographer | 10–15% of package cost | | Wedding DJ / band | $50–$200 flat, depending on event size | | Caterers (not covered in contract) | 15–20% divided among staff | | Tattoo artist | 15–20% | | Tour guide (group tour) | $5–$10 per person | | Tour guide (private tour) | 15–20% | | Furniture delivery / assembly | $10–$20 per person | | Auto mechanic | Not expected (but appreciated for exceptional work) |
A few notes on these:
Wedding vendors: tip at the end of the event, in labeled envelopes. Some vendors (coordinators, photographers) include a no-tip clause in their contracts — which doesn't mean you can't tip, just that they won't expect it. Confirm with your coordinator.
Tattoo artists: The tip is standard, not optional. Your artist spent hours on custom work. 15–20% is the floor. If you got something complex and the result is great, 25% isn't unusual.
Caterers: Check the contract first. Many event catering contracts include a "service charge" that goes to the company, not the staff. If you want the servers to get it, tip them directly.
Tour guides: $5–$10 per person for a group tour is fine. For a private half-day tour, treat it like a restaurant and aim for 15–20% of whatever you paid.
When in doubt: tip. Especially for workers who primarily earn through gratuity. The cost to you is small. The signal you send is not.
Try It Yourself
If you're splitting a large group bill or just don't want to do math after a long dinner, our Tip Calculator handles the full calculation in seconds — including per-person splits for any group size. For service workers or anyone evaluating income from wages and tips, our Salary to Hourly Conversion guide helps you understand your total effective hourly rate including tips.