Tip Out CalcCalculating a tip-out is simple once you know two things: what number your tip-out is based on, and what share each role gets. The hard part is usually doing it quickly and correctly at the end of a long shift. This guide walks through the steps, then works through three examples: percent of tips, percent of sales and fixed dollar amounts. By the end you should be able to check any tip-out report in a minute or two.
Step 1: Find out what your tip-out is based on
Every tip-out uses a base, the number the percentages are applied to. The most common bases are:
- Your total tips for the shift, cash and card combined.
- Your total sales, the full value of the checks you rang in.
- A sales category, such as alcohol sales for the bar or food sales for the kitchen.
If your policy uses fixed dollar amounts, there is no base. You simply pay each role a set amount.
Step 2: List each role and its rate
Write down every role you tip out and the percentage or dollar amount for each. If different roles use different bases, note that too. For example: bar 1.5% of alcohol sales, busser 1% of total sales.
Step 3: Work out each share
For a percentage, multiply the base by the percentage and divide by 100. For example, 5% of $200 is 200 × 5 ÷ 100 = $10. For a fixed amount, the share is just that amount.
Step 4: Add up your total tip-out
Add every role's share together. This is the total you owe at the end of the shift.
Step 5: Subtract to find your take-home
Take your total tips and subtract your total tip-out. What is left is what you actually keep. This is the number worth tracking from shift to shift.
Example 1: Percent of tips
You made $200 in tips. Your restaurant's policy is bar 5%, busser 3% and host 2% of your tips.
| Role | Math | Tip-out |
|---|---|---|
| Bar | $200 × 5% | $10.00 |
| Busser | $200 × 3% | $6.00 |
| Host | $200 × 2% | $4.00 |
| Total tip-out | 10% of tips | $20.00 |
| Your take-home | $200 − $20 | $180.00 |
A handy shortcut: add the percentages first. 5% + 3% + 2% = 10%, and 10% of $200 is $20. That gives you the total in one step, so you can check the individual shares against it.
Example 2: Percent of sales
You rang in $1,500 in sales, of which $400 was alcohol, and you made $250 in tips. The policy is busser 1% of total sales, host 0.5% of total sales and bar 1.5% of alcohol sales.
| Role | Math | Tip-out |
|---|---|---|
| Busser | $1,500 × 1% | $15.00 |
| Host | $1,500 × 0.5% | $7.50 |
| Bar | $400 × 1.5% | $6.00 |
| Total tip-out | $28.50 | |
| Your take-home | $250 − $28.50 | $221.50 |
Notice that your tips are not used to work out the shares at all. They only matter at the end, when you subtract. That is why a sales-based tip-out feels heavier on nights when guests tip less: the tip-out stays the same, but there is less to take it from.
Example 3: Fixed dollar amounts
You made $180 in tips. Your restaurant asks for a flat $15 to the busser, $10 to the host and $10 to the food runner.
| Role | Tip-out |
|---|---|
| Busser | $15.00 |
| Host | $10.00 |
| Food runner | $10.00 |
| Total tip-out | $35.00 |
| Your take-home | $145.00 |
Fixed amounts are the easiest to calculate, but they do not change with how busy the night was. On a slow shift, a flat tip-out can be a much larger share of your tips than it would be on a busy one.
Common mistakes to avoid
- Using the wrong base. Applying a sales percentage to your tips, or the other way around, is the most common error.
- Forgetting cash tips. If your policy is based on total tips, include cash as well as card tips.
- Rounding too early. Work out each share to the cent, then round at the end if your restaurant rounds.
- Missing a role. Check your list against the policy so you do not skip someone, or pay someone twice.
Doing it faster with a calculator
Tip Out Calc handles percent of tips and fixed dollar amounts directly. Enter your total tips, add each role with its percent or amount, and the results update as you type. If your policy is based on sales, work out each role's dollar amount first using the steps above, then switch to fixed dollar amounts and enter those to see your total tip-out and take-home.
House rules vary. These examples use made-up numbers to show the math. Your restaurant's policy decides the real rates and bases, and rules about tips can differ by location. This is general information, not legal or payroll advice. Confirm amounts with your manager or pay system.
Try it with tonight's numbers. Enter your tips and roles, and see each share, your total tip-out and what you keep.
Open the Tip Out Calc calculatorKeep reading
- How Much Should Servers Tip Out? A Practical Guide covers what a typical total looks like.
- Tip-Out by Role: Bar, Bussers, Hosts, Runners and Kitchen lists common ranges for each role.
- Tip-Out on Sales vs Tips: Why the Base Matters compares the two bases with the same shift.