How it’s calculated
Tax and tip are percentages of the pre-tax bill. Add them to the bill, then divide by the number of people. Rounding up makes paying in cash easier; the extra can go to the server.
Example: a $120 bill with 8% tax and an 18% tip. Tax = $9.60, tip = $21.60, total = $151.20. Split four ways, each person pays $37.80. Rounded up to whole dollars that is $38 each, which collects $152, or $0.80 extra.
Frequently asked questions
Should the tip be calculated before or after tax?
Etiquette guides usually suggest tipping on the pre-tax amount, which is what this calculator does. To tip on the total, raise the tip percentage slightly.
What if people ordered very different amounts?
Split evenly only when orders are similar. Otherwise, have each person pay their own items plus the same tax and tip percentages.
Why does rounding collect more than the bill?
Each share is rounded up, so the group pays a little more than the total. The extra amount is shown so you can leave it as additional tip.
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Sources
- Contemporary Mathematics, §6.1 Understanding Percent — OpenStax
- Contemporary Mathematics, §6.2 Discounts, Markups, and Sales Tax — OpenStax
Formulas are taken from the free public references above. Results are provided “as is” for informational and educational purposes only. See our disclaimer.
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