Bill Splitting & Tip Guide

"Five of us had dinner, but one person didn't drink. How do we split it?"

A simple even split would be nice, but reality is complicated.

Let's learn how to settle bills fairly without ruining the atmosphere.

Basic: Equal Split

Simple Equal Division

Total: $150
People: 5

Per person = 150 / 5 = $30

Rounding to Whole Dollars

What if it's actually $30.14?

Option 1: Round down ($30 each)
→ Shortfall: Host covers it

Option 2: Round up ($31 each)
→ Remainder: Goes to next gathering or back to the payer

Option 3: Exact amounts
→ Accurate but tedious

Recommendation: Round to the nearest dollar, put the difference toward the next gathering.

Situational Settlement Methods

1. Drinkers vs Non-Drinkers

Total: $200
- Food: $100 (5 people shared)
- Drinks: $100 (only 3 people)

Drinkers: (100/5) + (100/3) = 20 + 33.33 = $53.33
Non-drinkers: 100/5 = $20

2. Someone Joined Late

Round 1: 4 people × $40 = $160
Round 2: 5 people (1 joined) × $50 = $250

Original 4: $40 + $50 = $90
Late arrival: $50

3. Someone Left Early

Total 4-hour gathering
A: 4 hours (full attendance)
B: 2 hours (left early)

Option 1: Proportional
- A: 4/6 = 66.7%
- B: 2/6 = 33.3%

Option 2: Based on consumption
- Each pays for what they actually had

4. Birthday/Celebration

Celebrant: 1 person
Others: 4 people

Option 1: 4 people cover 5 shares
→ Per person = Total / 4

Option 2: Cover only celebrant's meal
→ Per person = (Total - celebrant's portion) / 4 + (celebrant's portion / 4)

Tip Calculation

US Standard

Service	Tip Rate
Restaurant	15-20%
Bar/Cafe	15-20%
Delivery	15-20%
Taxi	15-20%
Hotel Bellhop	$1-2/bag
Housekeeping	$2-5/night

Quick Calculation Method

10%: Move decimal one place left
15%: 10% + half
20%: 10% × 2

Example: $48.50 meal
10% = $4.85
15% = $4.85 + $2.42 = $7.27 → $7
20% = $4.85 × 2 = $9.70 → $10

Splitting with Tip

Meal: $200
Tip 20%: $40
Total: $240
People: 4

Per person = $240 / 4 = $60

Pre-Included Group Tip

Some restaurants add auto-gratuity for parties of 6 or more.

Check your receipt:
Subtotal: $200
Gratuity (18%): $36  ← Already included!
Total: $236

No additional tip needed (though you can add more)

Settlement Tools

Payment Apps

Country	Service
USA	Venmo, Zelle, PayPal
UK	Monzo, Revolut
Global	PayPal, Wise

Expense Splitting Apps

Splitwise: Complex group settlements, great for trips
Settle Up: Simple group settlements
Tricount: Easy group expense tracking

Using Splitwise

Travel group (4 people)

Day 1:
- A pays accommodation: $200
- B pays dinner: $80

Day 2:
- C pays activities: $120
- D pays car rental: $100

→ App automatically calculates minimum transfers needed

Settlement Etiquette

DO

- Agree on splitting method beforehand
- Share receipt photos
- Settle same day or next day
- Let small amounts go (keep the mood)

DON'T

- Bring it up days later (awkward)
- Chase payment in group chat (uncomfortable)
- Argue over cents (kills the mood)
- Let one person carry the burden

For Regular Groups

Dues system:
- Collect fixed amount monthly
- Designate a treasurer
- Settle at year-end

Taking turns:
- This time A, next time B
- Keep amounts roughly equal

International Travel Tips

Tipping Culture by Country

Country	Tipping Culture
USA	Required (15-20%)
Canada	Required (15-20%)
Europe	Optional (5-10%, service charge often included)
Japan	Unnecessary (can be rude)
South Korea	Unnecessary
Australia	Optional (around 10%)

Checking European Service Charges

Receipt:
Service: €5.00  ← Already included
Total: €55.00

No additional tip needed (small change is fine)

Currency Conversion

Total: $120
Exchange rate: 0.92 EUR/$
People: 4

Total (EUR) = 120 × 0.92 = €110.40
Per person = €110.40 / 4 = €27.60

Cost Sharing Formulas

Usage-Based Distribution

Joint purchase: $1,000
A usage: 60%
B usage: 40%

A pays: $1,000 × 0.6 = $600
B pays: $1,000 × 0.4 = $400

Income-Based Distribution (Couples/Roommates)

Rent: $1,500
A income: $4,000 (57%)
B income: $3,000 (43%)

A pays: $1,500 × 0.57 = $855
B pays: $1,500 × 0.43 = $645

Space-Based Distribution (Roommates)

Total utilities: $300
A's room: 100 sq ft (40%)
B's room: 150 sq ft (60%)

A: $300 × 0.4 = $120
B: $300 × 0.6 = $180

FAQ

Q: Can I pay by card and collect cash?

A: Yes. However:

Points/miles go to the cardholder
Cash payers accept the inconvenience
Agree beforehand to avoid issues

Q: One person always eats more

A: Sensitive situation.

Suggest separate checks from the start
Agree on a different method next time
Avoid direct confrontation (ruins the mood)

Q: I feel awkward asking for payment

A: Use a splitting app - it sends automatic reminders. Helpful when you don't want to ask directly.

Summary

Situation	Method
Simple equal split	Total / People
Varied consumption	Common costs + Individual costs
International tips	15-20% of pre-tax amount
Complex settlements	Use an app (Splitwise)
Regular gatherings	Dues system

Key points: Agree beforehand, settle quickly, let small amounts slide.

Related Tools

Tool	Purpose
Tip Calculator	Calculate tip amounts
Bill Splitter	Equal split, proportional sharing
Percentage Calculator	Ratio calculations

Bill Splitting & Tip Guide - From Equal Splits to Proportional Sharing