Understanding Tips
A tip (also called gratuity) is a sum of money given to service workers as a thank you for good service. In many countries, particularly the United States, tipping is customary and expected in restaurants, bars, salons, and other service industries.
The Basic Tip Formula
Tip Amount = Bill Total × (Tip Percentage ÷ 100)
Total with Tip = Bill Total + Tip Amount
Total with Tip = Bill Total + Tip Amount
Example Calculation
For a $50 restaurant bill with a 20% tip:
- Calculate the tip: $50 × (20 ÷ 100) = $50 × 0.20 = $10
- Add to bill: $50 + $10 = $60
Quick Mental Math Tricks
The 10% Method
The easiest way to calculate tips mentally:
- Find 10% by moving the decimal point one place left
- For 20%: double the 10% amount
- For 15%: add half of 10% to 10%
Example: $47.50 bill
- 10% = $4.75
- 20% = $9.50
- 15% = $4.75 + $2.38 = $7.13
Standard Tipping Percentages
| Service | Standard Tip | Great Service |
|---|---|---|
| Restaurant (sit-down) | 15-18% | 20-25% |
| Bartender | $1-2 per drink | 15-20% |
| Food delivery | 10-15% | 20% |
| Taxi/Rideshare | 10-15% | 20% |
| Hairdresser | 15-20% | 25% |
| Hotel housekeeping | $2-5/night | $5-10/night |
Splitting the Bill with Tip
When dining with a group:
- Calculate the total bill with tip
- Divide by the number of people
- Or split the bill first, then each person adds their own tip
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