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## What is the meaning of tip?

Tip is at times known as gratuity & it is stated to be the sum of the money which for the most part is tendered to service sector workers for the service provided. And one will have to keep the fact in mind that this tip is (actually) apart from the basic price. Another aspect of this tip is that this in some countries it is quite common to tip the servers while in some other countries it can be stated to be disrespectful or even insulting.

## Tip Calculator

## How to calculate tip?

When it comes to calculating tip or the gratuity, then the amount which serves as a tip will generally be a certain percentage of a bill or it could also be a specified range of the monetary amounts. However, the amount of this tip or gratuity is based on the service provided. Furthermore, in some countries such as Europe, giving a tip is rarely seen while if a tip is given or even offered to the United States of America government workers in general & the police officers in specific, then it is termed to be illegal & is known as bribery.

## Calculate tip manually

**Case 1: Move the decimal & later double the number**

Let us say that the tip to be given is 20 % & the pre – tax bill is $ 53. 75, then the following steps are to be followed to get to know as to how much tip is to be paid.\(\Rightarrow \, the \, decimal\, is\, to\, be\, moved \, 1\, place\, to \, the\, left\,=\, $ 5.375 \)

\(\Rightarrow \, the \, decimal\, is\, to\, be\, moved \, 1\, place\, to \, the\, left\,=\, $ 5.375 \)

\(\Rightarrow \, round \,up \,the\, amount\,=\,$ 5.40\)

\(\Rightarrow \,double\, this\, number\,=\,$ 10.80\)

\(\Rightarrow \, $10.80 \, is \, 20% \, of \, the \, bill\)

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**Case 2: double the number before you move decimal**

\(\Rightarrow \, round\, up\, $ 53.75\, to \, $ 54\)

\(\Rightarrow \, double \, the\, above\, number\,=\,$ 108 \)

\(\Rightarrow \, next\, move\, the\, decimal\, 1 \,place \,to \,left\,=\,$ 10.80 \)

\(\Rightarrow \,this \, $ 10.80 \, is \, 20 %\, of\, the\, bill\)

**Case 3: just double the tax**

\(\Rightarrow \,all\, you\, will\, have\, to \, do\, is\, round\, up\, the\, tax \)

\(\Rightarrow \,which\, means\, ,\,if\, bill\,= \,$ 53.75\, and\, tax\,=\,$ 4.77 \)

\(\Rightarrow \,round \, up\, tax\,=\,$ 5 \)

\(\Rightarrow \,now\, double\, the\, tax\,=\,$ 10 \)

\(\Rightarrow \,$ 10\, is\, 19 %\, of\, the\, tip\, (\,approximately\,)\)

**Note:**

** **This rounding up is done according to the mathematical rule that is, if it is 5 or more then round up but if it is lower than 5 then you will have to round down. The tax bill is same for the rest of the cases as well. When it comes to splitting the meal & contribution towards the tip then the tax is to be doubled only for the portion of the bill which is yours.

## How to use a tip calculator?

To use this online tip calculator, you will have to enter the price (pre – tax price) & click on the calculate tab. If you wish to add the bill amount besides the number of people, then you can add them as well before clicking on the tab that reads calculate to get to know the answer for the tip calculator.