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Everything depends on which total you actually start from

The [msm_tool slug="tip-calculator"] calculates the tip on whatever total is entered, adds the two together, and divides the result by the number of people — simple arithmetic that goes wrong entirely at the input stage rather than in the calculation itself. Tipping on a figure that already includes tax means tipping on the tax as well, and tipping on a total that already includes a service charge means effectively paying for the same thing twice.

Check for a service charge before adding anything

Many restaurants add ten to fifteen per cent automatically, particularly for larger groups, and it is easy to miss on a bill that is not read closely. Tipping on top of a charge that already covers service is optional rather than expected, and often happens simply because nobody noticed it was already there.

Pre-tax or post-tax is a preference, not a rule

Tipping on the pre-tax figure is the stricter reading, since tax was never part of the service being rewarded, while tipping on the full total is simpler and costs a little more. Neither is wrong; it is a genuine choice rather than a calculation with one correct answer.

Conventions vary enormously by country

Around twenty per cent is standard in the United States, ten per cent or simply rounding up is common across much of Europe, and in Japan offering a tip can cause offence rather than being appreciated. Local custom decides what is appropriate far more than any formula does.

Why individual shares can land a cent or two off the total

Each person's share is rounded to two decimal places independently, and several roundings applied separately can leave the sum a small amount away from the actual grand total — not an error in the calculation, just what rounding several numbers does when they are added back together afterwards.

An even split is not always the fair one

Dividing a bill equally is straightforward arithmetic, but where one person ordered a full meal and another had a single coffee, an equal split becomes a social decision about the group rather than a neutral calculation — worth agreeing on deliberately rather than defaulting to without discussion.