Tip Pool Calculator
Enter the total tip amount collected for the shift or period, then add each staff member with their hours worked or allocated point value. The calculator distributes the tip pool proportionally and shows each person's share in both percentage and dollar or pound amount.
| Name | Hours worked | |
|---|---|---|
How to use this tool
- 1Enter the total tip pool amount for the shift or period - this is the total cash tips and any card tip amount to be distributed.
- 2Choose whether to split by hours worked or by allocated points (a system where different roles receive different point values per hour).
- 3Add each staff member who participated in the tip pool with their hours or points.
- 4Read each person's tip share in the results - both the amount and the percentage of the total pool.
- 5Adjust individual point values or hours to model different scenarios before finalising the distribution.
Formula used
Example
Total hours: 4 x 7 + 2 x 5 = 38 hours. Per hour rate: 320 / 38 = 8.42. Each server receives 7 x 8.42 = 58.95. Each runner receives 5 x 8.42 = 42.11. Total distributed: 4 x 58.95 + 2 x 42.11 = 235.80 + 84.22 = 320.00.
Manager points: 12. Each server: 8. Each kitchen: 4. Total points: 12 + 24 + 8 = 44. Per point value: 480 / 44 = 10.91. Manager: 130.91. Each server: 87.27. Each kitchen: 43.64.
Common use cases
- Splitting end-of-shift tip pool among servers, runners, and support staff fairly and transparently
- Calculating weekly tip distribution for a tronc or pooled tip arrangement
- Testing different point allocations for different roles before implementing a new tip-sharing policy
- Providing staff with a clear breakdown of how their tip share was calculated to build trust
- Managing tip distribution for events and catering where multiple staff are involved
Common mistakes
- Including staff who did not work the service in the distribution - only include staff who were on the floor for that specific period.
- Using scheduled hours instead of actual hours when splitting by time - use clock-in records for accuracy.
- Not having a clear written policy on who is included in the tip pool and at what point value - disputes arise from ambiguity.
- Forgetting to account for any employer contribution or processing fees deducted from card tips before distribution.
Frequently asked questions
Who should be included in a restaurant tip pool?
This varies by establishment policy, local law, and concept. Common arrangements include: servers only; servers and runners or bussers; all front-of-house staff; front-of-house and back-of-house combined. In some jurisdictions, management and supervisors cannot legally participate in tip pools funded by customer tips. Check your local employment law before setting your policy.
What is the difference between tip pooling and tipping out?
Tipping out is when servers contribute a percentage of their own tips (or sales) to support staff (runners, bussers, bartenders). Tip pooling combines all or a portion of collected tips into one pool and distributes it based on hours or points. This calculator supports tip pooling distribution. For tipping out, use the individual tip amounts and apply a percentage contribution.
Should kitchen staff receive tips?
This is a matter of policy and increasingly of culture. Some jurisdictions permit tip sharing with kitchen staff; others restrict it. Many operators now include kitchen staff in some or all of the tip distribution to reduce front/back pay disparity. Check local employment law, which varies significantly by country and in some cases by state or region.
How do I handle card tips that are processed through payroll?
Card tips paid through the payroll system are subject to income tax in most jurisdictions. The gross amount should be entered into this calculator for distribution purposes, and then the appropriate tax deductions applied through payroll separately. Consult your payroll provider or accountant for the correct tax treatment in your jurisdiction.
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