How to work out a tip
Tip = bill × tip percentage
Each person pays = (bill + tip) ÷ number of people
A quick way to do it in your head: move the decimal point one place left to get 10%, then double it for 20%. On a $64 bill, 10% is $6.40, so 20% is $12.80. For 15%, add half of the 10% figure: $6.40 + $3.20 = $9.60.
Worked example
Two of you share an $80.00 dinner and tip 20%. The tip is $16.00, the total is $96.00, and each of you pays $48.00.
If the bill includes $6.50 of sales tax and you tip on the amount before tax, the tip is 20% of $73.50, or $14.70, saving you $1.30.
Things to know
- Before or after tax is up to you. Many people tip on the pre-tax amount, which is why the calculator lets you enter the tax separately.
- Check for a service charge. Some restaurants add one automatically, especially for large groups. It's usually printed on the bill.
- For workers, tips are income. Tips must be reported, and they're subject to Social Security and Medicare taxes. A new federal deduction lets eligible tipped workers deduct up to $25,000 of qualified tips from income tax.
Questions people ask
What is 20% of a bill?
Divide the bill by 5. On $45 that's $9; on $120 it's $24. The table above shows 15% to 25% for your own bill.
How do I split a bill when people ordered different amounts?
Work out each person's share of the pre-tax bill, then add the same tip percentage and a share of the tax to each. Or run the calculator once per person with their own subtotal.
Sources
- IRS: Topic 761, tips (withholding and reporting)
- IRS: new and enhanced deductions for individuals (deduction for qualified tips)
Reviewed September 26, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.