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How to calculate tips, gratuity and split bills: A Blog around how to calculate gratuity, tip

Updated: Feb 27, 2022

Most of us know what a tip is. It's an extra amount given to individual service and also organizations for extra service. Waiters, hairdressers, taxi drivers, and so on, all expect a tip, and small amounts can make a big difference to their income. But there's no standard percentage given as a tip. So how much should you tip? It's mainly up to you, and depends on how much you're giving and how happy you are with the service. It may be helpful to think of a tip as a reward for excellent service, and a tip is also a way of thanking the service provider for doing a good job. If you're happy with the service you've had, then a tip is a small cost to you. It can make a big difference to the person who serves you, as the amount they receive as a tip is an added bonus on top of their salary.



A gratuity, tip, or a service charge is a monetary gift given to certain service sector workers beyond the advertised price. Tips are a very important source of income for a lot of service sector workers, especially in the United States. The standard tip calculator rate varies from country to country, from a few percent to 15% of the bill. It is customary to tip from the very beginning of the service, but even after the waiter/waitress has taken the order, the tip is usually not revealed until the bill is presented. Tipping can be a subjective experience, but there are a few rules that most countries abide by when tipping.

Tip (or gratuity) is a payment voluntarily made by the client to the service provider in addition to the cost of the service. This is a common practice in many countries around the world. Typically, a tip is a percentage of a person's bill, which can vary from a few percent to 20% depending on the service industry, the locale and the quality of the service.


The tip is a sum of money given voluntarily by the client to the service provider. This is a common practice in many countries around the world. Tipping is an activity that has been around for many years. However, even today it is still not entirely clear why people tip. According to the study conducted by Michael Lynn at Cornell University, waiters in the United States get ~$3.7 billion in tips annually calculate tip. In the year 1885, a man named William Walsh published a piece of writing, where he mentioned a few of the reasons why people tip. He stated that people tip waiters because they want to get better service in the future. According to this theory, if you tip the waiter well, you might get better service the next time you visit the restaurant.


A tip (or gratuity) is a sum of money given voluntarily by a client to a service provider, in addition to the basic price of the service. It may be given to reward exceptional service or as a kind gesture. There are also many instances when a tip is not optional, such as when a government-mandated service charge is included in a bill. In some cases, the tip may be prohibited altogether. For example, many restaurants in the United States will add a mandatory service charge to bills in addition to an optional tip.


Most people know that they should tip their waiter/waitress when they go out to eat. But how much should you tip? I think the right amount of tip is determined by how satisfied you were with the service you received. If the service was good, you should tip 10% - 20%. If the service was exceptional, you should tip 20% - 30%. If the service was bad, you should try to avoid tipping anything at all and if you must, leave a small dollar amount.


Tips can be a very important part of a waiter’s income. Some restaurants provide for their employees in the front of house, others don’t. This can create a very awkward situation where management wants to provide a good service and improve tips but doesn’t have the money to do so. How to solve this? It’s simple, do as much as you can to improve tips. This is important because a good tip can be the difference between a waiter earning a living wage and having to work three jobs to make ends meet.


Tips are a particularly good way to add a bonus to a good meal. It is also a good way to show your appreciation for excellent service. You should expect to tip waiters, waitresses and bartenders in restaurants. You should expect to tip the taxi driver and hotel porters. You should not tip anybody who is not working.

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