Tip Amount
Gratuity as a percentage of the bill.
Formula
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Example
15% of $40 = $6
How it works
A tip is a fraction of the total bill, turned into dollars by converting the percentage to a decimal and multiplying by the bill amount. For example, 20% means 20 out of 100, or 0.20, so the tip is 0.20 times the bill. This works because percentages are just another way to express part of a whole.
When to use it
Use this when you want to figure out how much to leave as a gratuity at a restaurant, salon, taxi, or other service. It also helps when checking whether a tip amount matches a stated percentage.
Worked example, step by step
Bill = $58 Tip percent = 18% Convert 18% to a decimal: 18/100 = 0.18 Multiply: tip = 0.18 × 58 Tip = 10.44 Final answer: the tip is $10.44
Common mistakes to avoid
- Using the percent number directly instead of dividing by 100 first
- Multiplying the bill by the percent twice
- Forgetting that the tip is based on the pre-tax bill unless the situation says otherwise
Did You Know?
A quick 15% tip: take 10% (move the decimal) and add half of that again.
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