How to calculate a tip and split it
The server is waiting, the receipt is on the table, and someone asks "what do we tip?" Here is the math that works in your head, and the fair way to split it.
Step 1: work out the tip
Most people tip on the subtotal, before tax. A few shortcuts make it quick:
- 10%: move the decimal one place left. $84.00 becomes $8.40.
- 20%: double the 10%. $8.40 × 2 = $16.80.
- 15%: 10% plus half of it. $8.40 + $4.20 = $12.60.
- 18%: 20% minus 2%. $16.80 − $1.68 = $15.12.
| Subtotal | 15% | 18% | 20% |
|---|---|---|---|
| $40.00 | $6.00 | $7.20 | $8.00 |
| $60.00 | $9.00 | $10.80 | $12.00 |
| $84.00 | $12.60 | $15.12 | $16.80 |
| $120.00 | $18.00 | $21.60 | $24.00 |
| $200.00 | $30.00 | $36.00 | $40.00 |
Step 2: split it
If everyone ordered about the same, divide the total evenly. Example: three friends, subtotal $84.00, tax $7.35, 20% tip $16.80. Total $108.15, so each person pays $36.05.
If orders were very different, split tax and tip in proportion to what each person ordered. The formula is: your share = your items ÷ subtotal × (tax + tip). Someone whose order was half the subtotal pays half the tax and tip.
Step 3: handle the pennies
Proportional splits rarely land on whole cents. Round each person to the cent, then check the totals add up to the bill. If you're a cent off, give the extra cent to the person with the biggest order. That way the payer is never left short.
Quick checklist at the table
- Find the subtotal (before tax).
- Pick a tip percentage and calculate it.
- Add tax and tip.
- Split evenly, or by item if orders were very different.
- Send payment requests before everyone leaves.
Related: how to split the tip fairly, splitting the check when some people ordered drinks, and how to split a restaurant bill fairly.
FAQ
Do you tip on the total before or after tax?
Most people tip on the subtotal before tax. Tipping on the after-tax total is fine too. It just adds a little extra.
How do you calculate a 20% tip quickly?
Move the decimal one place left to get 10%, then double it. On $84.00 that's $8.40 doubled, or $16.80.
How do you split a tip between friends?
Split it evenly if everyone ordered about the same. Otherwise divide it in proportion to each person's order, so whoever ordered more tips more.
Is there an app that calculates and splits the tip?
TipSplit scans the receipt, lets you pick the tip, and splits tax and tip fairly per person. It's free for 20 scans a month with unlimited manual splits and no account needed.