Why We Built This Calculator
Anyone who's closed out a restaurant shift knows the scene. It's 11pm, you're exhausted, and there's a pile of cash that needs to get divided up before anyone can go home. Maybe you're working off a spreadsheet someone made three years ago. Maybe it's a calculator app and a lot of mental math. Either way, it takes longer than it should and someone usually has questions.
We talk to restaurant owners and managers every day at POSUSA. The tip pooling question comes up constantly—not because the math is complicated, but because getting it wrong creates real problems. Staff disputes. Accusations of unfairness. High performers feeling like they're subsidizing weaker servers. New hires confused about what they're actually earning.
This calculator won't solve every tip-related headache, but it handles the math part cleanly. Pick your distribution method, plug in the numbers, and you've got a breakdown you can print and post. Transparent, consistent, and fast enough that you might actually make last call at the bar down the street.
Three Ways to Split Tips (And When to Use Each)
There's no single "right" way to distribute tips. What works for a fine dining steakhouse probably doesn't fit a fast-casual lunch spot. Here's how each method plays out in practice:
By Hours Worked
The most straightforward approach. Whoever works more hours gets a proportionally bigger cut. Simple to explain, hard to argue with.
Best for: Casual restaurants, bars with similar service roles, teams where everyone does roughly the same job.
By Role Percentage
Different positions get different percentages of the pool. Servers might get 60%, bartenders 25%, bussers 15%. Within each role, you split by hours.
Best for: Full-service restaurants with distinct support roles, places where some positions have more guest interaction.
Equal Split
Everyone gets the same amount regardless of hours or role. Radical simplicity. Some teams love it; others find it unfair.
Best for: Small teams with equal shifts, counter service where tips are sporadic, places prioritizing team unity.
Most restaurants we talk to use either hours-based or role-based distribution. The equal split tends to work better in smaller operations or as a special case for slow shifts where the total pool is minimal anyway.
A Quick Note on Compliance
Tip pooling laws aren't uniform across the country. What's perfectly legal in Texas might get you in trouble in California. The federal Fair Labor Standards Act sets a baseline, but many states layer additional restrictions on top.
A few things that are generally true (but verify for your state):
- Owners and managers typically can't participate in tip pools
- If you take a tip credit, only traditionally tipped employees can be in the pool
- You can't require employees to share tips to "cover" credit card fees in most states
- Whatever system you use needs to be clearly communicated to staff before their shifts
We're not lawyers, and this calculator is a math tool—not legal advice. If you're setting up a new tip pooling policy, it's worth spending an hour with an employment attorney who knows your state's rules. The cost is nothing compared to a wage complaint.
How to Actually Implement Tip Pooling
Getting the math right is the easy part. Getting your team on board is where most restaurants struggle. Here's what we've seen work:
Start with transparency
Before you change anything, explain why you're doing it and exactly how the new system works. Show real examples with actual numbers. "You worked 6 hours out of 24 total, so you get 25% of the pool" is concrete. "We're going to be more fair" is not.
Post the breakdown where everyone can see it
Print the results and put them somewhere visible. Back office, break room, wherever. When the math is public, complaints about fairness drop significantly. Nobody can claim they got shorted when the numbers are right there.
Pick a consistent cadence
End of shift? End of day? Weekly with payroll? There's no wrong answer, but pick one and stick with it. Inconsistency breeds distrust.
Revisit the percentages periodically
If you're using role-based distribution, those percentages aren't set in stone. Maybe your food runners are taking on more responsibility and deserve a bigger cut. Maybe you added a barback position. Check in quarterly and adjust if needed—just communicate changes before they take effect.
