Hourly Wage with Tips Calculator
Combine your base hourly wage with tips to find what you really earn per hour, how much of your pay comes from tips after tip-out, and your weekly and annual earnings for servers, bartenders and drivers.
How it works
tips kept per shift = tips × (1 − tip-out %) · tips per hour = tips kept ÷ hours per shift · hourly wage with tips = base wage + tips per hour · weekly = hourly × hours per shift × shifts · annual = weekly × weeks
In tipped jobs the base wage is only part of the story: what matters is total pay per hour once tips are added and any tip-out to colleagues is taken away. Averaging tips over several shifts gives a more honest figure than one good night. Knowing your true hourly rate lets you compare restaurants, shifts and other jobs fairly — and check that base plus tips at least reaches the minimum wage where that rule applies.
Worked example
A server earns $8.00/h base, works 6-hour shifts and makes $90 in tips per shift, giving 10% to the bussers and bar. Tips kept are $81, or $13.50/h, so the real hourly wage is $8.00 + $13.50 = $21.50/h — 62.8% of it from tips. Five shifts a week is $645.00, and 50 weeks is $32,250.00 a year.
Sources: US DOL Fact Sheet #15: Tipped Employees Under the FLSA
Frequently asked questions
How do I calculate my hourly wage with tips?
Divide the tips you keep by the hours you worked and add your base hourly wage. $81 of tips over 6 hours is $13.50/h; with an $8 base you earn $21.50/h.
Should I count tip-out?
Yes. Money you share with bussers, bartenders or the kitchen is not your income, so subtract it before working out your hourly rate.
How do I estimate annual income as a server?
Use your average tips per shift over a few weeks, multiply your hourly rate with tips by your weekly hours, then by the weeks you work in a year. Seasonal swings can be large, so update it as the year goes on.
Do tips count toward the minimum wage?
In some places employers may count tips toward the minimum wage (a "tip credit"); in many others they may not. Check the rule where you work.
Related calculators
Estimates for planning only. Your employment contract, collective agreement and local labor law decide what you are actually owed; check with your employer, payroll team or a qualified adviser before relying on a figure.