Calculating a tip (also called a gratuity) is straightforward: it's usually a percentage of the bill for a service, added on top of the cost. Here's how to do it step by step, with easy mental math tricks.
Simple tip formula
Tip amount = Bill amount × Tip percentage (as a decimal)
Here are the steps:
Convert the percentage to a decimal: 15% = 0.15, 20% = 0.20, etc.
Multiply the pre-tip bill by that decimal.
Add the tip to the bill for the total payment.
Example: Bill is $50, and you want to tip 20%.
20% as a decimal = 0.20
Tip = $50 × 0.20 = $10
Total to pay = $50 + $10 = $60
Hint: You can use your phone's calculator app or built-in tip features on many payment apps. For very precise math: Tip = Bill × (Tip % / 100).
Splitting the bill
If sharing the meal with others:
Calculate the total tip first.
Divide the tip (and total) by the number of people.
Example: $120 bill, 20% tip ($24), 4 people → $6 tip per person.
How much to tip?
Tipping customs vary by country and service quality—adjust based on experience (e.g., tip more for excellent service, less for poor).
Restaurants (sit-down): 15–20% for good service; 18–25% for excellent; 10–15% for average/poor.
Bars: $1–$2 per drink, or 15–20% of the tab.
Taxis/Rideshares (Uber/Lyft): 15–20% of the fare (or a flat $2+ for short trips).
Delivery: 15–20% or a minimum of $5 (more for bad weather or stairs).
Hair stylists/Barbers: 15–20%.
Fast food/Counter service: Often $0–10%, or just round up (not always expected).
In some places, a service charge is already added—check the bill so you don't double-tip. Tipping norms differ elsewhere (e.g., less common or not expected in many European or Asian countries).
Tipping varies widely by country and culture
United States: Strongly expected in restaurants (15–20%+), rideshares, delivery, salons, etc. It's a big part of the culture.
Europe: Often a small amount (5–10%) or just rounding up the bill. Many places include a service charge already ("service compris" in France).
Japan, China, South Korea: Tipping is rare or can even be seen as rude/insulting—service is expected to be excellent without extra payment.
Other places: It ranges from "baksheesh" (small tips common in parts of the Middle East, Africa, and South Asia) to almost none in Australia or New Zealand outside tourist spots.