Tip before or after tax
Many people tip on the amount before tax, because the tax is not a charge for the service. Others tip on the total, because it is easier. Both are common, and the difference is small. On a pre-tax amount of 100.00 with 8% tax and an 18% tip:
| Tip on | Calculation | Tip |
|---|---|---|
| Amount before tax | 100.00 x 18% | 18.00 |
| Total with tax | 108.00 x 18% | 19.44 |
The calculator shows both tips under the result, so you can see how much the choice changes.
If the bill shows only the total
When the amount you have includes tax, choose Amount includes tax and enter the tax rate. The calculator takes the tax out to find the amount before tax:
amount before tax = total / (1 + tax rate / 100)A total of 108.00 with 8% tax is 108 / 1.08 = 100.00 before tax, and the tax is 8.00.
Tax, VAT and service charges
In countries with VAT, for example 5% in the UAE, menu prices often already include it, so choose that your amount includes tax. Look at the printed bill: VAT and any service charge are usually shown as separate lines. If a service charge is already on the bill, a tip may not be needed.
Splitting the total
Enter the number of people and the calculator divides the total, with tax and tip, between them.
Related calculators
For a simple tip, use the tip calculator. For a sale price with tax, use the percent off calculator. For other percentages, use the percentage calculator.