How the Tip Formula Works
The tip is a percentage of the bill subtotal:
Tip = subtotal × tip% ÷ 100
Grand total = subtotal + tip + tax
For an even split: per person = grand total ÷ number of people. Everyone pays the same share regardless of what they ordered.
For a fair split: person's share = (their subtotal / group subtotal) × grand total. Tip and tax are distributed proportionally — someone who ordered more pays a larger share of each.
Even Split vs. Fair Split
Even split works well when everyone ordered roughly the same amount, or when the group prefers simplicity over precision. It's the fastest calculation and avoids awkward comparisons.
Fair split is appropriate when there are large differences in order size — one person ordered a $12 pasta, another ordered a $42 steak. An even split makes the cheaper order subsidize the expensive one. Fair split ensures each person's total reflects what they actually ordered, including their proportional share of tip and tax.
Pre-Tax vs. Post-Tax Tipping
Tip on the pre-tax subtotal, not the post-tax total. Tax is a government charge — tipping on the post-tax amount effectively tips on money that goes to the government, not the server.
On a $100 bill with 8.875% NYC sales tax and a 20% tip: tipping on the $100 subtotal = $20. Tipping on the $108.88 total = $21.77. The difference grows at higher tax rates and more frequent dining. Enter only the food and drink charges in the subtotal field, and add the tax amount separately.
Service Charges vs. Tips
Many restaurants add an automatic gratuity — commonly 18–20% — for large parties or as standard policy. Look for "gratuity included," "service charge," or "auto-grat" on the receipt. If you see this, tip has already been added.
To use this calculator with an auto-grat bill: set the tip percentage to 0% and enter the full bill amount (including the service charge) as the subtotal. Or enter the pre-service-charge subtotal normally with tip set to 0%, and enter the service charge amount in the tax field.
Rounding and the ±$0.01 Issue
When splitting a bill, individual per-person amounts may not sum exactly to the grand total due to cent rounding. A $100.01 total split three ways is $33.3367 per person — each rounded to $33.34 sums to $100.02, one cent over.
This calculator shows amounts rounded to two decimal places. Small rounding differences of a few cents are normal. One person can round down to absorb the difference, or the group can round up and leave a slightly larger tip.