How to use the server tip-out
Enter tips collected, eligible sales, and tip-out on sales (%). Choose the currency for your inputs and read the result as you change the values.
How it works and formula
Tip-out = eligible sales × tip-out rate. Remaining tips = collected tips − tip-out.
Worked example
| Tips collected | 150 |
|---|---|
| Eligible sales | 800 |
| Tip-out on sales (%) | 3 |
Result
Tip-out $24.00 · Tips remaining $126.00
Try a second calculation
Start with the USD worked example above and change only tip-out on sales (%) to 4. Select Calculate. Your result should read:
Tip-out $32.00 · Tips remaining $118.00
Then enter 2 in the same field. Compare the result with the first scenario row. Holding every other input steady lets you see exactly how this one change affects the calculation.
Choosing your inputs
Start with the eligible sales total on the shift report. A percentage of food sales, beverage sales, or all sales can produce very different payouts. Match the input to the basis of your tip-out arrangement. Enter the tips collected in a separate field.
How to interpret the result
A negative remaining balance means the sales-based payout exceeds the tips entered. Check for a misplaced decimal or sales from another shift. This model is for a percentage of sales. It does not calculate a payout that is a percentage of collected tips.
Frequently asked questions
Which sales should I include?
Enter only the sales covered by your arrangement. For a beverage-sales tip-out, use beverage sales.