TipScan
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Free tool · Updated August 2026

Tip-Out Calculator

Enter your sales, tips, and your house's rules — see exactly what goes to the bar and bussers, and what you actually keep.

House rule presets
Who you tip out
%
%
You keep
$204.00
after giving up 15% of your tips
Bussers (% of sales 2%)−$24.00
Bar (% of sales 1%)−$12.00
Total tip-out−$36.00
Do this automatically, every shift

TipScan reads your checkout slip with your phone camera — cash, card, tip-out, real hourly, logged in 3 seconds. Free, no ads. Get the app →

How tip-outs actually work

Every restaurant writes its own rules, but they collapse into four shapes: a percent of your total sales, a percent of your tips, a percent of liquor/bar sales, or a flat amount. Sales-based tip-outs are the sneaky ones — on a slow tip night, 3% of sales can eat a third of what you made. This calculator lets you stack multiple recipients with different bases, exactly like a real checkout.

The number to watch: tip-out as % of tips

Whatever the house formula, convert it to one number: how much of your tips you're giving up. Under 15% is typical for full service; consistently above 25% means your section, your menu mix, or the house rules are working against you. Track it per shift and per day-of-week — that's how you find out Tuesday dinner is quietly your worst deal.

Why per-shift records matter

Tip-outs almost never appear on a paystub. If your house miscounts (bartenders report shortages of $3–4 per shift more often than you'd think), or you ever need to prove income or dispute a tip pool, your own shift log is the only evidence that exists. TipScan reads your checkout slip and keeps that record automatically — including the tip-out line.

FAQ

What is a tip-out?＋

A tip-out is the share of your tips (or sales) you pass to support staff — bussers, bartenders, food runners, hosts. House rules vary: common structures are 2–3% of total sales, 10–20% of tips, or 10% of liquor sales to the bar.

Is tip-out based on sales or tips?＋

Both exist. Sales-based tip-outs (e.g., 3% of your total sales) are common in full-service chains and can exceed 20% of your tips on a bad tip night. Tips-based tip-outs scale with what you actually earned. Know which one your house uses — it changes your real hourly.

Can I deduct tip-outs on my taxes?＋

Tips you pass to other employees through a valid tip-sharing arrangement generally aren't your income — but only your own records prove what you paid out, since tip-outs rarely appear on paystubs. Keep a per-shift log.

Is a 3% of sales tip-out legal?＋

Tip pooling rules are set by the FLSA and state law — managers and owners can never take a cut, and rules differ if your employer takes a tip credit. If your tip-out looks wrong, your shift-by-shift records are the first thing a labor lawyer or your state's labor board will ask for.

This tool is an estimate for planning purposes only — not tax, legal, or financial advice. Verify against IRS guidance or a tax professional.