Tip Pool Calculator

The tip pool calculator distributes tips fairly based on hours worked. It calculates the total hours worked by all employees, determines a tip rate per hour, and then multiplies each employee's hours by that rate to determine their share.

• Tip Rate = Total Tips / Total Hours Worked
• Employee Share = Hours Worked x Tip Rate

Splitting tips by hours worked is one of the fairest methods because it accounts for the amount of time each employee contributed to the shift. Someone who worked 8 hours contributed more time than someone who worked 4 hours, so they receive a proportionally larger share of the tips.

Tip pooling is legal in most states, but rules vary. Generally, tips can only be shared among employees who customarily receive tips (servers, bartenders, bussers, etc.). Managers, supervisors, and back-of-house staff may have different rules depending on your location. Always check your local labor laws for specific regulations.

This calculator uses a simple hours-based distribution. For more complex tip pools where different roles receive different percentages (like servers getting a larger share than bussers), you may need to calculate each role separately or use weighted hours.

Employees with zero hours will receive $0 in tips. The calculator only distributes tips to employees who have contributed hours during the shift or time period being calculated.