Tip-out formula: amount × rate ÷ 100
Start with the amount your house policy specifies. For a sales-based rule, use the relevant sales total. For a tips-based rule, use tips earned before tip-out. A flat rule adds the entered dollar amount directly. Each row is rounded to the nearest cent, then the rows are added.
Sales-based vs. tips-based: the same shift
With $1,200 in sales and $240 in tips, the choice of base makes a large difference:
| Rule | Tip-out | Tips you keep | Share of tips paid out |
|---|---|---|---|
| 3% of sales | $36.00 | $204.00 | 15% |
| 3% of tips | $7.20 | $232.80 | 3% |
| 20% of tips | $48.00 | $192.00 | 20% |
On a lower-tip night with the same sales and only $120 in tips, that $36 sales-based tip-out becomes 30% of tips. A tips-based rule changes with what you receive. This comparison describes the arithmetic, not whether a policy is lawful.
When different coworkers use different rules
For example, 2% of $1,200 sales for bussers is $24. Add 5% of $350 liquor sales for the bar: $17.50. Total tip-out is $41.50; from $240 in tips, you keep $198.50. Select a base for each row instead of adding the percentages together.
All rows use the original amounts you enter. This tool does not calculate points-based pools, hours-weighted distributions, or a percentage of tips remaining after another payout.
Share a reusable calculator with your coworkers
Set your rows and choose Copy rules link. The link preserves labels, bases, and rates. Sales and tip earnings are not included. A shared link is a snapshot: editing your calculator later does not change a link you already sent.
Keep the result with your shift
Check whether your checkout already subtracts a tip-out before entering net tips elsewhere. Keep recipient names and amounts in your own records. Download the free daily tip log, or calculate your hourly earnings including wages.