About the Tip Pool Calculator
This tip pool calculator divides a night’s or a week’s pooled tips among your team. Paste a list of staff with the hours each person worked and, if you use a points system, their points, and it returns each person’s share, their effective tips per hour and the rate per hour or point.
It is made for restaurant managers, bar leads, salon owners and anyone running a tip pool who wants a fast, transparent split. Three common methods are supported: by hours (everyone earns the same per hour), by points (each role gets a fixed weight such as server 1.0, busser 0.5), and by hours × points (the most common hybrid, where both time and role count).
You can deduct a credit-card processing percentage before splitting if your employer is allowed to and does so. In the US, managers and supervisors may not take part in an employee tip pool, and employers may not keep any of the tips — check your state rules too.
With the default inputs, the tips to distribute is $1,500.00. Change any value above to recalculate instantly.
How to use the tip pool calculator
- 1Enter the total tips collected for the shift or pay period.
- 2Choose to split by hours, by points, or by hours × points.
- 3List each person on a new line with name, hours worked and points.
- 4Add a card processing deduction only if your employer applies one.
- 5Read each person’s payout in the table and check the pool balances.
Formula and method
The pool is total tips minus any card processing deduction. Each person’s units depend on the method: hours worked, their role points, or hours multiplied by points. Every unit is worth the same amount (pool ÷ total units), so each payout is that rate times the person’s units, and the payouts always add up to the whole pool.
Splitting by hours rewards time on the floor equally. Points reflect role — for example servers 1.0, bartenders 1.0, bussers or food runners 0.5 — and hours × points combines both, so a busser working 8 hours at 0.5 points gets the same share as a server working 4 hours.
- Units_i
- Share units for person i under the chosen method
- fee%
- Card processing percentage deducted before the split
Worked examples
$1,500 split by hours among four staff
The team worked 8 + 6 + 7.5 + 5 = 26.5 hours, so each hour earns $1,500 ÷ 26.5 = $56.60. Alex, with 8 hours, receives the largest share of $452.83 and Taylor, with 5 hours, gets $283.02.
Same team split by hours × points
Weighted units are 8 + 6 + 7.5 + (5 × 0.5 = 2.5) = 24. Each weighted hour is worth $1,500 ÷ 24 = $62.50, so Alex receives $500 and Taylor, the busser at half points, receives $156.25.
$800 by points with a 2.5% card-fee deduction
Deducting 2.5% leaves a $780 pool. With 1 + 1 + 0.5 = 2.5 points, each point is worth $312, so Maria and Chen get $312 each and Leo gets $156.
Frequently asked questions
How do you split tips in a tip pool?+
Add up the tips, decide on a method (hours, points or hours × points), total everyone’s units, and divide the pool by that total to get the value of one unit. Each person gets their units times that value.
What is the fairest way to split tips?+
Many restaurants use hours × points, which pays for both time worked and role. Pure hours-based splits are simple and transparent; points-only splits suit shifts where everyone works similar hours.
Can managers take part in a tip pool?+
Not in the US. Since the 2018 amendments to the FLSA, managers and supervisors may not keep any portion of employees’ tips, and employers may not keep tips either, whether or not they take a tip credit.
Can back-of-house staff share in the tip pool?+
Under federal rules, cooks and dishwashers can be included in a mandatory tip pool if the employer pays everyone at least the full federal minimum wage ($7.25 an hour) and takes no tip credit. Some states have stricter rules, so check state law.
Can my employer deduct credit card fees from tips?+
Federal rules allow an employer to deduct no more than the card company’s actual transaction fee percentage on tips paid by card, and the deduction may not reduce the employee below minimum wage. Several states prohibit this deduction entirely.