How to Calculate Tips in Your Restaurant?

Tipping has become widespread throughout the service industry worldwide, including restaurants. In fact, it is even categorized as one of the restaurant marketing ideas in many parts of the world.

To make sure that everyone is adequately compensated for their hard work, splitting tips with all contributing staff members is a great way to reward everyone involved. This provides better job satisfaction and encourages them to continue to provide excellent customer service.

With tip-splitting being so common among employees, many customers are finding it hard to calculate the amount of tip that should be given when being in a restaurant, so that becomes appropriate. Ahead, we’ll show you how to calculate tips in the restaurant. Read on!

What is a tip?

What is a tip
What is a tip

A tip is an optional or extra payment that customers give to restaurant employees when dining out and receiving good service. This payment is usually in the form of cash but may also be in other forms, such as credit cards, debit cards, gift cards, tickets, and more.

Tips also may be received across employees through tip pools or sharing arrangements.

Why is it important to know how to calculate tips in the restaurant?

Why is it important to know how to calculate a tip
Why is it important to know how to calculate a tip

Tipping is a common practice in many service industry settings. Therefore, it is crucial to know how to calculate tips in the restaurant so that it becomes appropriate.

For many of those working in this field, such as servers, tips often make up a large portion of their income. Not tipping correctly or not tipping at all can be detrimental to someone’s livelihood, so knowing the right way to tip can make all the difference.

In addition, certain tipping rates are customary in different settings—restaurants usually have a 15-20% rate, while other services may expect more or less. Calculating an accurate tip accordingly can save you both time and money while ensuring that the person helping you receives a fair wage.

How to calculate a tip

How to calculate a tip
How to calculate a tip

Calculating a tip amount is fairly straightforward. Generally, the tip amount should be based on the cost of the service and can be determined by multiplying the total bill by 0. XX (with XX being the desired percentage you want to leave as a tip).

To include the tip when calculating the total cost, simply multiply your cost of service by 1. XX (again, XX being your desired percentage). The customary tipping rate in many settings, such as restaurants, is 15-20%.

Tips for deciding how much to tip

Tips for deciding how much to tip
Tips for deciding how much to tip

Deciding an appropriate amount of tip is typically based on the quality of your experience.

Generally, it is recommended to leave between 15-20% of the total bill of your meal as a tip, depending on how well your server provided you with customer service. So, different services can result in different amounts of a tip.

If you had an excellent service experience, then you may want to consider leaving a bigger tip—some people choose to leave above 20%, depending on their budget and preferences.

On the flip hand, if you had a bad experience or were unhappy with the level of service that was provided, then you may choose to leave less than 15%.

It’s important to note that some restaurants have minimum tipping amounts required, so be sure to check before deciding how much to leave as a tip.

Most Frequently Asked Questions

How do you calculate a 15% tip at a restaurant?

Calculating a 15% tip at a restaurant is simple. To do the math, you first need to calculate the total amount of your bill. Then, multiply that number by 0.15 (or 15%) to get your tip amount. For instance, if your bill comes out to be $35, then your total tip would be $5.25 ($35 x0.15 = $5.25).

How do you calculate tips per hour?

To figure out the average tip per hour, divide the total of the tip by the number of hours worked. If a business implements a pool tips system, any amount given to staff is considered their share.

What is the tip ratio for a restaurant?

When dining at sit-down restaurants, it is customary to tip the wait staff, typically ranging from 15 percent to 20 percent of the bill before taxes. However, it’s important to note that tipping is not expected at fast-food establishments.


It’s common to feel overwhelmed or even a little anxious when dealing with math, especially when dealing with tipping. But don’t worry; this guide will help you out.

This guide provides some easy tips and tricks to calculate a tip in restaurants quickly and accurately. Next time you’re out to eat, try using these methods and see how much easier it is than you thought it would be.

Andrea Abbondanza

Andrea Abbondanza, born in Milan (Italy) and now a proud Australian citizen, is a passionate food lover and the dynamic CEO of With his rich culinary background and deep understanding of online marketing strategies, Andrea helps restaurants and cafes around the world elevate their online presence. His journey from Italy to Australia has infused his work with a unique blend of European flair and Aussie charm, making him a go-to resource for cafes and restaurants looking to elevate their digital presence and grow their businesses.

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Seo for Restaurants is a boutique agency specialised in Google Business Management, SEO and Local SEO for restaurants and Cafes.

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Andrea Abbondanza is a passionate food lover and the CEO of Seo for Restaurants. With his rich culinary background and deep understanding of online marketing strategies, Andrea helps restaurants and cafes worldwide elevate their online presence and increase

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