Calculating Tips

Total with Tax & Tip: Learn

A tip or gratuity is an amount of money that is given to a worker such as a waiter/waitress, hair stylist, performer, or any other who performs a service for you. It is especially important to tip waitstaff at restaurants because they might make most of their money from tips.

A common tip amount is 20% of the cost of the meal or service. Generally a tip is determined based on the total bill which includes the cost of the meal and sales tax.

If a meal costs $10 and the sales tax is 5%, then the total bill is $10.50. A 20% tip based on this bill would be $10.50*0.20 = $2.10, so the final total with tax and tip is $12.60.

You can perform this in one large calculation by adding 1 to both of the percents and multiplying: $10 * 1.05 * 1.20 = $12.60.

Total with Tip: Practice

What is the total with tax and tip?


Note: Your answer should begin with a dollar sign and be rounded to the nearest cent.

What is the total cost with tax and a 20% tip if a meal is
$ with a % tax rate?

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