How to use the tip pool calculator
- Enter the total tips collected for the pool.
- Pick a split method: an equal share for everyone, by hours worked, or by points you assign for role or shift.
- Optionally enter a house or kitchen share as a percentage of the pool. It is taken off first. Enter 0 for none.
- List each person with hours or points. The table shows every share to the cent, and the shares always add up to the amount being split.
Formula
House share = pool x house percent / 100 (rounded to the cent)
Amount split = pool - house share
Quota for a person = amount split x their hours or points / total hours or points
Each share starts at its quota rounded down to the cent
Leftover cents go to the largest fractional remainders, earlier rows first on a tie
This is the largest remainder method. It is deterministic, so the same inputs always give the same shares, and no cent is lost or invented.
Worked example
$1,000 in tips with a 5% house share leaves $950.00 to split. Four people worked 32, 28, 20 and 8 hours, 88 hours in all.
The exact quotas are $345.4545, $302.2727, $215.9091 and $86.3636. Rounded down they total $949.98, leaving two cents. The two largest remainders belong to the third and first person, so the final shares are $345.46, $302.27, $215.91 and $86.36, which add up to $950.00.
Why rounding needs a rule
When you divide money among people, the shares rarely come out to whole cents. If every share is simply rounded to the nearest cent, the total can end up a cent or two above or below the pool. The largest remainder method avoids that by rounding everyone down first and then giving the spare cents to the people closest to the next cent. A tie goes to the earlier row, so the result never changes between runs.
Hours, points and equal shares
Equal share suits a team where everyone works the same shift. Hours reward time on the floor. Points let you weight roles, such as a higher point value for a server than a busser, and the weights are your own decision. Enter hours or points as decimals if you need to, for example 7.5 hours. Someone with zero hours receives nothing but stays on the list.
If you are comparing this with a simple split on a bill, use the tip calculator. To see what the wages around a tip pool cost, use the labor cost calculator.
What is not modeled
Rules about tip pooling differ by state and by the type of employer, including who may share in a pool and whether the house may keep any part of it. Tax reporting, payroll withholding and credit card processing fees are also outside this calculator. It performs the arithmetic you ask for and is not legal advice.
Assumptions and limits
- The house share is an example percentage that you set. Whether any deduction is allowed depends on the rules where you operate.
- Hours and points are read to four decimal places, and the shares are in whole cents.
- Every listed person with a name or a value is included. Blank rows are ignored.
- No payroll tax, withholding or reporting is calculated. Tip pooling rules differ by state and employer type and are not modeled.
Frequently asked questions
How do the shares always add up exactly?
Each share is rounded down to the cent, then the leftover cents are handed out one at a time to the largest fractional remainders. The total therefore equals the amount being split with no drift.
What happens if two people have the same remainder?
The earlier row in your list gets the extra cent first. This tie rule is fixed so the answer is the same every time.
Can I weight a manager or bartender more than others?
Use the points method and give each role the number of points you decide. Hours are ignored in that method, so a person who worked less can still carry a higher weight if you give them more points.
Is the house share taken before or after the split?
Before. It is a percentage of the full pool, rounded to the cent, and the rest is divided among the people listed.