Tip Calculator

How it works

Calculating a tip involves three steps: finding the tip amount, adding it to the bill, and dividing the total by the number of people. This calculator does all three instantly.

The formula

Why this works: A tip is simply a percentage of the bill, so the formula finds that percentage and adds it to the total. Dividing the combined total by the number of people gives each person an equal share. The formula works for any bill size, any tip percentage, and any group size.

Common tip percentages in the UK

In the UK, 10% is a standard tip for good service and 12.5% is common at restaurants (often added automatically as a discretionary service charge). Leaving 15 to 20% is considered generous. For other percentage calculations, you can calculate a fraction of any amount. For shopping discounts, you can find what a percentage off means in pounds. For sales roles, our commission calculator shows your earnings on any sale.

Worked examples

When to use this

This calculator comes up in four common situations when eating or spending out in the UK:

• Restaurant dining: Many London and UK city restaurants automatically add a 12.5% discretionary service charge to bills for groups of six or more. Checking the amount before you pay ensures you are comfortable with the figure and know your exact per-head cost.
• Splitting with large groups: When eight or ten people share a celebration meal, the maths of splitting gets complex. Rounding errors can leave someone short or the server missing part of their tip. Using the calculator before the card machines come out avoids awkward moments.
• Taxi and private hire: While tipping is not obligatory for taxis in the UK, rounding up or leaving 10% is common. The calculator works just as well for a £16 taxi fare as a £160 restaurant bill.
• Hotel and hospitality staff: Some UK hotels include a discretionary gratuity on room service orders or spa treatments. Checking the percentage and total against your bill is straightforward with the calculator.

Understanding the result

The calculator shows three figures: the tip amount, the total bill including the tip, and each person's share. The tip amount increases linearly with both the percentage and the bill size. Doubling the tip percentage doubles the tip; doubling the bill size doubles the tip for the same rate.

In the UK, a discretionary service charge is technically optional even if it appears on the bill. If you feel the service was poor or the charge has already been included in the menu price, you are within your rights to ask for it to be removed.

Related concepts

➡ If you want to check how much VAT is included in a restaurant bill before deciding on a tip, the VAT calculator separates the net price from the tax. ➡ When a restaurant offers a deal or set menu at a discounted price, you can confirm the saving against the standard menu price before you book. ➡ For calculating a tip on a service charge that has already been added to the base bill, the percentage of a percentage calculator handles nested percentage calculations.

How to do this in Excel

Put the bill in A1, tip percentage in B1, and number of people in C1. This formula calculates each person's share in one step. To show the tip amount separately, use =A1*B1/100. To show the total including tip, use =A1*(1+B1/100).

How to do this without a calculator

For a 10% tip, divide the bill by 10. For 12.5%, divide by 10 and then add a quarter of that figure. For 15%, find 10% and add half again. For example, on a £84 bill: 10% = £8.40, half of that is £4.20, so 15% = £12.60. Add to the bill for the total, then divide by the number of people.

Real world uses

• Calculating the 12.5% discretionary service charge added automatically at many London restaurants.
• Working out a fair tip for a taxi driver after a long journey.
• Checking what a 10% tip amounts to when dining out with a large group and splitting the bill.
• Calculating a gratuity at a hotel restaurant where service is not included in the bill.
• Dividing a takeaway delivery bill and tip equally between flat mates.

Common mistakes

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