💵 Tip Out Calculator
Calculate Fair Tip Distribution for Restaurant Staff
Distribute tips fairly using percentage, points, or hours-based methods
Tip Out Calculator Tool
💰 Enter Total Tips
👥 Tip Out Roles & Percentages
Click to add common roles:
What is Tip Out?
Tip out (also called "tipping out") is the practice of redistributing a portion of a server's tips to other support staff who helped create the dining experience. This typically includes bussers, bartenders, food runners, hosts, and barbacks.
📖 Common Tip Out Percentages
| Role | Typical Range | Common Rate |
|---|---|---|
| 🧹 Busser | 15-25% | 20% |
| 🍺 Bartender | 5-15% | 10% |
| 🍽️ Food Runner | 5-15% | 10% |
| 🚪 Host/Hostess | 3-10% | 5% |
| 🧊 Barback | 3-8% | 5% |
| Total Tip Out | 25-45% | 30-40% |
Tip Out Formulas
Percentage-Based Tip Out
Points-Based Tip Out
Hours-Based Tip Out
Server Take-Home
Tip Out Methods
📊 Percentage-Based Tip Out
The most common method. Each support role receives a fixed percentage of the server's total tips. Easy to calculate but doesn't account for shift length or effort.
Example: $200 tips → Busser (20%) gets $40, Bartender (10%) gets $20
⭐ Points-Based Tip Out
Tips are divided by total points, then multiplied by each person's points. Allows weighted distribution based on role importance or seniority.
Example: Server (10 pts), Busser (5 pts) = Server gets 2x the busser
⏱️ Hours-Based Tip Out
Tips are divided based on hours worked. Fairest method for varying shift lengths. Often used in pooled tip environments.
Example: $600 pool ÷ 18 total hours = $33.33/hour
How to Calculate Tip Out
- Count your total tips — Add up all cash and credit card tips received.
- Know your restaurant's policy — Check the tip out percentages for each role.
- Calculate each role's share — Multiply total tips by each percentage.
- Distribute to staff — Give each support staff their calculated amount.
- Keep your take-home — Subtract total tip out from your tips.
Official Resources
Frequently Asked Questions
Yes, tip out is legal when done correctly. The DOL allows tip pooling among employees who "customarily and regularly" receive tips (servers, bartenders, bussers, hosts). Managers and owners generally cannot participate in tip pools. State laws vary, so check local regulations.
Industry standard is 25-40% total tip out. Common breakdown: Bussers 15-20%, Bartenders 5-10%, Food Runners 5-10%, Hosts 3-5%. Your restaurant should have a clear policy. If tip out exceeds 40%, it may be excessive.
If tip pooling is your employer's policy, you're generally required to comply. Refusing may result in disciplinary action. However, if you believe the policy violates labor laws (e.g., managers taking tips), consult with your state's labor department or an attorney.
It depends on your restaurant's policy. Some places have bartenders tip out barbacks from their bar tips but not support staff from food service tips. Others pool all tips together. Ask your manager for clarification.
Both systems exist. Tips-based: Tip out is a percentage of actual tips received. Sales-based: Tip out is a percentage of total sales (e.g., 3% of sales to bussers). Sales-based can mean paying tip out even on bad tips, but it's consistent.
Tip out: Servers give a percentage of their tips to specific support roles. Tip pooling: All tips go into a shared pool and are divided equally or by hours/points. Tip out is more individualized; pooling is collective.
Under 2018 DOL rules, if the employer pays full minimum wage (no tip credit), back-of-house can be included in tip pools. If the employer takes a tip credit, BOH generally cannot receive tips. State laws may differ.
You must report all tips to your employer (at least $20/month). Your employer withholds taxes from your paycheck. Keep a daily tip log for records. Tip outs you give to others are deductible from your reported income.
You still typically owe tip out on whatever you earned. With sales-based tip out, you may owe even if tips were below the percentage. Some restaurants have minimums or adjust for slow periods—ask your manager about policies.
This calculator uses standard formulas and is a helpful tool for estimating tip distribution. However, always follow your restaurant's specific policies. If you're unsure about rates or rules, ask your manager or consult your employee handbook.
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Last Updated: January 2026