How to Calculate a Tip in Your Head

It is customary to leave a tip for many services that are supplied by people like waiters and waitresses, taxi drivers, hotel maids, moving company staff and hair salon staff to name a few. The rule of thumb amount is 15%, although there are varying thoughts as to the amount that would be appropriate for exceptional service (usually 20%) and poor service (10% or less). Some people frown on giving no tip, as in many instances the server is not the reason for the service issue; traffic snarls and kitchen issues can be the problems and these people rely on tips to supplement their minimum wage. So now that we have some ideas as to the etiquette involved, lets look at some simple math ideas to make the calculation simple but effective. Easy Way to Calculate a 15% Tip Rule of thumb — standard service — 15%. The most commonly used shortcut to 15% is to find 10% and then add a half. This is an easy calculation, since all you need to do to find 10% is move the decimal point one space to the left (make the number smaller). Consider a bill for 47.31. First impressions show us 10% is 4.70 and a half of this amount is 2.35, so a tip of 7.00 is reasonable. This is a simplification as we can do the exact math — 4.70 add 2.35 is 7.05 — but we are looking for an easy method, not an exacting science. Another sound strategy is to work from the highest place value, in other words, if the bill is in the 50s then the tip should be in the 7.50 range. If the bill is 124.00, the logic follows that 12 add 6 18 so a total of 124 add 18 or 142 is reasonable. Calculating a Tip Based on Sales Tax Another very sound strategy is to work from the sales tax. Look at your sales tax rates and devise a strategy based on the amount. In New York city, the tax on a meal is 8.75% so you can just double the amount of tax and your service provider is happy. There are also some fun and unique answers to the question of how to do the math without straining yourself. Consider the following examples that people have provided:Great service - bill times 10%, then doubled.Less then great service - bill times 10%. For a bill under $50:Great service - bill times 10% then doubled - you will be over 15 and the appreciation should be noticed.Good service - somewhere in between great and less than good. Add a little to less than good and you will be safe.Less than good service - bill times 10% - the message will be conveyed but you are smart enough to realize that it may not be their fault alone. For a bill over $50:Make sure you start your calculations based on the pre tax amount of your bill.Great service - 10% of the bill - doubled - round down.Less than great - 10% round down. With the exception of those bills where the tip is already included, tipping and how to figure out the tip is a very individualized experience. Estimation and rounding is something I do all the time for tipping as I am not going to worry about a few extra cents here and there. And tip-ically I round up as its a rare event when I dont feel like being generous when Im out for a meal. Edited by Anne Marie Helmenstine, Ph.D.