Is 18% or 20% a Good Tip?
Both are good tips. In the US, 20% is the modern default for good service, and 18% is perfectly respectable — the difference between them is small in dollars and large only in habit. Here's how to decide, and what the gap actually costs you.
The quick verdict
- 20% — the standard for good-to-great sit-down service. When in doubt, tip this and don't think twice.
- 18% — solid and normal, common for decent service or when you're being a little budget-conscious.
- 15% — the floor. Fine for mediocre service; below it signals a problem.
- 25%+ — for exceptional service, a regular spot where you want to be remembered, or a small bill where a low percentage feels stingy.
The real dollar difference
The 18%-vs-20% debate sounds bigger than it is. On common pre-tax bills:
| Bill (pre-tax) | 18% tip | 20% tip | Difference |
|---|---|---|---|
| $40 | $7.20 | $8.00 | $0.80 |
| $80 | $14.40 | $16.00 | $1.60 |
| $150 | $27.00 | $30.00 | $3.00 |
| $250 | $45.00 | $50.00 | $5.00 |
For most meals you're deciding between tips that are one or two dollars apart. That's why many people simply default to 20% — the mental simplicity is worth more than the couple of dollars.
When to lean one way or the other
- Quick or counter service: 18%, or a flat couple of dollars, is fine.
- Full sit-down service, a server who looked after you: 20%.
- Large or complicated orders, special requests, a server who saved your evening: 20–25%.
- Small bills: tip a bit above the percentage — 20% of a $12 lunch is $2.40, and rounding up to $3–4 is a kinder floor.
Splitting the tip across a group
Once you've picked your percentage, the fair way to split it is proportionally — each person covers the tip on their own order, not an equal slice. The simplest method is a single multiplier: for a 20% tip and 8% tax, multiply each person's food total by 1.28.
The tip calculator does this automatically — set your tip percentage and it splits the tip and the bill fairly across everyone, in any currency.