Restaurant Gratuity Calculator
Work out the tip on a restaurant bill, split it evenly, and check whether an auto-gratuity is already on the check. Owners can set a large-party policy and copy the menu wording.
Last updated November 12, 2026 · Free · Nothing stored
For diners and servers
Each of 2 pays
$55.04
Tip to add $17.20 ($8.60 each). Total gratuity is 20% of the pre-tax bill.
- Food and drink
- $86.00
- Tax (8%)
- $6.88
- Tip to add
- $17.20
- Total
- $110.08
On this bill, before tax
How do you calculate gratuity at a restaurant?
Multiply the bill before tax by the tip percentage, then add the tip and tax to the bill. On an $86.00 dinner with 8% tax, a 20% tip is $17.20 and the total is $110.08, or $55.04 each for two. If the check already shows an auto-gratuity, subtract it first so you do not tip twice.
Tip percentages follow the Emily Post Institute’s guidance of 15 to 20% of the pre-tax amount for sit-down service. The auto-gratuity rules follow the IRS’s tip recordkeeping and reporting guidance, which treats automatic charges as service charges paid as wages, and the federal wage regulation at 29 CFR 531.55. Tax rates, bills and policy settings are yours to enter; the starting values are examples.
How to calculate gratuity
Multiply the bill before tax by the tip percentage. For 20%, move the decimal one place to the left and double it: a $86 bill is $8.60, doubled to $17.20. For 15%, take 10% and add half of it again.
The Emily Post Institute puts sit-down service at 15 to 20% of the pre-tax amount. Tipping on the total after tax is common too; it only adds the tip percentage of the tax, which is small. If the check already shows a gratuity or service charge, only top it up to the percentage you intended.
The formula
Tip = bill before tax × tip %
Total = bill + tax + tip
Each person = total ÷ people
Worked example
- $86.00 × 20% = $17.20 tip
- $86.00 × 8% tax = $6.88
- $86.00 + $6.88 + $17.20 = $110.08
- $110.08 ÷ 2 = $55.04 each
Gratuity chart: 15%, 18%, 20%, 22% and 25%
Tip amounts on the bill before tax, rounded to the cent.
| Bill | 15% | 18% | 20% | 22% | 25% |
|---|---|---|---|---|---|
| $20 | $3.00 | $3.60 | $4.00 | $4.40 | $5.00 |
| $30 | $4.50 | $5.40 | $6.00 | $6.60 | $7.50 |
| $40 | $6.00 | $7.20 | $8.00 | $8.80 | $10.00 |
| $50 | $7.50 | $9.00 | $10.00 | $11.00 | $12.50 |
| $60 | $9.00 | $10.80 | $12.00 | $13.20 | $15.00 |
| $75 | $11.25 | $13.50 | $15.00 | $16.50 | $18.75 |
| $100 | $15.00 | $18.00 | $20.00 | $22.00 | $25.00 |
| $125 | $18.75 | $22.50 | $25.00 | $27.50 | $31.25 |
| $150 | $22.50 | $27.00 | $30.00 | $33.00 | $37.50 |
| $200 | $30.00 | $36.00 | $40.00 | $44.00 | $50.00 |
| $250 | $37.50 | $45.00 | $50.00 | $55.00 | $62.50 |
| $300 | $45.00 | $54.00 | $60.00 | $66.00 | $75.00 |
Auto-gratuity vs tip vs service charge
An auto-gratuity is a set percentage the restaurant adds to the bill, usually for larger parties. A tip is whatever the guest decides to leave. The difference matters for the guest, who should not tip twice, and for payroll.
| Tip | Auto-gratuity or service charge | |
|---|---|---|
| Who sets the amount | The guest | The restaurant |
| Can the guest refuse it | Yes | Not without disputing the bill |
| Federal payroll treatment | Tip income, reported by the employee | Wages paid by the employer |
| Counts toward a tip credit | Yes | No |
| What the guest should do | Choose a percentage | Read the check and top up only if they want to |
The IRS counts a payment as a tip only if the customer voluntarily decides to pay it and decides the amount. Its own example is a mandatory 18% charge for a large party: that is a service charge, paid to staff as wages, and it does not qualify for the new deduction for qualified tips. Federal wage rules agree that a compulsory charge for service is not a tip even when the restaurant passes it to staff. Anything a guest adds on top of it is a tip. Some states and cities set their own rules on service charges, so check yours. This is general information, not tax or legal advice.
How to set an auto-gratuity policy guests accept
With the policy in the calculator (18% for parties of 6 or more), a table of 8 spending $420.00 gets an auto-gratuity of $75.60 and a check of $529.20.
- 01Put it in writing before they order. The menu, the booking confirmation and the website should all say the percentage and the party size.
- 02Say it at the table. One line when the party sits down saves the argument when the check arrives.
- 03Label it plainly on the check. Use a line like “Auto-gratuity 18% (party of 8)” so nobody tips twice by mistake.
- 04Decide the base and stick to it. Before discounts pays staff on the service they gave; after tax is the hardest to defend to a guest.
- 05Run it through payroll as wages. Not through the tip report. Pool and pay it out on the schedule you tell staff.
More for restaurant owners
- Split the tips between staffTip pool and tip-out by hours, points or role.Open →
- Price the menuPlate cost, food cost percentage and menu price.Open →
- Count the missed reservationsWhat unanswered calls cost a restaurant each month.Open →
- Answer every booking callHow an AI front desk takes reservations and waitlist calls.Open →
How to work out a restaurant tip
01
Enter the bill before tax
Type the food and drink subtotal from the check and your sales tax rate.
02
Pick the tip and check for a service charge
Choose 15–25% or type your own. If the check already lists a gratuity or service charge, enter its percentage so the calculator only tops it up.
03
Split and round
Set how many people are paying and choose exact, round the tip, round the total, or even shares. Copy the split or a link to send the table.
Common questions
How much is a 20% tip?
Move the decimal one place left and double it. On a $50 bill that is $10.00; 15% is $7.50, 18% is $9.00 and 25% is $12.50. The chart on this page lists common bill sizes.
Do you tip on the total before or after tax?
Etiquette guides, including the Emily Post Institute, tip on the amount before tax. Tipping on the total after tax is common and only adds the tip percentage of the tax. The calculator lets you choose and shows the difference on your bill.
What is an auto-gratuity?
A set percentage the restaurant adds to the bill, usually for large parties. A typical policy reads “18% for parties of 6 or more”. On a $420.00 check for 8 guests that is $75.60.
Do I have to tip on top of an auto-gratuity?
No. The auto-gratuity is the tip the restaurant has already added. If you wanted to leave more, add only the difference: on a $420.00 check with 18% included, reaching 20% means adding $8.40, not another 20%.
Is an auto-gratuity a tip or a service charge?
For federal tax and wage purposes it is a service charge. The IRS counts a payment as a tip only if the customer voluntarily decides to pay it and decides the amount, and federal wage rules say a compulsory charge for service is not a tip. Restaurants pay it to staff as wages. State and city rules can add requirements.
Does an auto-gratuity count for the deduction for qualified tips?
No. The IRS says mandatory service charges, including automatic charges for large parties, are not tips and are not eligible for the qualified tips deduction that applies to tax years 2025 through 2028. Any amount a guest voluntarily adds on top of the auto-gratuity is a tip and may qualify.
How do you split the bill and tip evenly?
Add the tip and tax to the bill and divide by the number of people. Choose “Even shares” to round each person up to a whole dollar; the few cents of rounding go to the tip, never short the server.
Should restaurants calculate auto-gratuity before or after discounts?
Calculating it on the food and drink total before discounts and tax means a comp does not cut what staff earn for the service. Whatever you choose, say it on the menu and the check.
Related
Other tools
See it against your book
Big parties start with a phone call. Make sure it gets answered.
On a 30-minute demo we show the front-desk agent taking a large-party enquiry, collecting the date, headcount and occasion, and passing it to your team with the details filled in, including after close.