Tip out calculator
Type your tips and sales for the shift and the percent you tip out to each person. The tool shows each amount and what is left.
Not legal, tax or payroll advice. General information only; results are estimates. Read the full notice.
Example: with $1,100.00 in sales and $240.00 in tips, tipping out 3%, 2% and 1% of sales comes to $66.00, leaving an estimated $174.00.
Estimate based on what you entered. Not legal or payroll advice; check it against your employer's records.
How to use it
- Type your tips and your sales for the shift.
- Choose whether tip out is a percent of sales (the default) or of tips.
- Type the person or role and the percent for up to three tip outs.
- Read each amount and the tips left.
What the sources say about sharing tips
- The U.S. Code says the tip rules do not prohibit pooling tips among employees who customarily and regularly receive tips. Federal regulations say an employer does not keep tips by requiring employees to share tips with other employees who are eligible to receive tips, and that employers may not require employees to share tips with managers or supervisors.
Questions
Is tip out based on tips or sales?
It depends on the workplace. The tool does both: pick the one your workplace uses.
Can the tip out be more than my tips?
The tool shows a message if the tip outs add up to more than the tips you entered.
Who can receive a tip out?
The sources below describe what federal law and regulations say about sharing tips. Your employer or your state labor department can confirm what applies to your workplace.
Official sources
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29 U.S.C. § 203(m)(2)(A) (opens in new tab), U.S. Government Publishing Office (U.S. Code).
“except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips.”
Checked November 11, 2026. Rules change; verify with the source. -
29 CFR § 531.54 Tip pooling (opens in new tab), Electronic Code of Federal Regulations (eCFR).
“An employer does not violate section 3(m)(2)(B)'s prohibition against keeping tips if it requires employees to share tips with other employees who are eligible to receive tips.”
Checked November 11, 2026. Rules change; verify with the source. -
29 CFR § 531.54 Tip pooling (opens in new tab), Electronic Code of Federal Regulations (eCFR).
“Section 3(m)(2)(B) expressly prohibits employers from requiring employees to share tips with managers or supervisors”
Checked November 11, 2026. Rules change; verify with the source.
These are summaries of what the official sources say, not legal advice. Laws change and exceptions apply. Check with your employer or your state labor department about your own job.