FREE TIPPED INCOME TOOL

Tip Income Calculator

Calculate tips per hour, tip-out, base wages, and your effective gross hourly earnings for a shift or pay period.

Tips per hour Tip-out Effective hourly earnings

CALCULATOR

Calculate tip income

Gross earnings estimate only. This calculator does not determine minimum-wage compliance, tip-credit eligibility, taxes, or other legal payroll obligations.

How to calculate tip income per hour

Start with the tips you received, subtract any tip-out or tip-share you pass to others, and divide the tips you keep by hours worked.

Tips kept per hour = (Gross tips − Tip-out) ÷ Hours worked

How to calculate effective hourly earnings with tips

Add base wage earnings, tips kept, and any additional service-charge wages or similar earnings for the same period. Divide that total by hours worked.

Effective hourly earnings = (Base wage × Hours + Tips kept + Other earnings) ÷ Hours

Example

At a $10 base wage for 6 hours, base earnings are $60. If gross tips are $180 and a 10% tip-out removes $18, you keep $162 in tips. Total gross earnings are $222, or $37 per hour.

Important: tipped-wage and tip-credit rules vary by jurisdiction. In the U.S., state requirements can differ substantially from the federal baseline, so this tool intentionally does not make a legal minimum-wage determination.

Tip income calculator FAQ

How do I calculate tips per hour?

Divide the tips you keep after tip-out by the hours worked.

How do I include my base wage?

Multiply base hourly wage by hours worked, add tips kept and other qualifying earnings, then divide by hours for an effective gross hourly rate.

What is tip-out?

Tip-out is the portion of tips distributed to other workers or a tip pool. Enter the percentage you actually give up.

Can I use this for one shift or a full week?

Yes. Keep the wage, hours, tips, and other earnings inputs within the same time period.

Does this calculate taxes or minimum-wage make-up?

No. It focuses on gross earnings and tip productivity rather than jurisdiction-specific payroll compliance.

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