The four-step method
- Find the distributable pool. Subtract only the documented amounts removed before the split.
- Add all eligible hours. Use the hours defined by the workplace policy.
- Calculate the hourly pool rate. Divide distributable tips by total eligible hours.
- Calculate each share. Multiply the rate by each person’s hours.
person’s tips = pool × (person’s hours ÷ team hours)Worked example
A $480 pool is shared across 18 total hours: Alex worked 8, Jordan 6 and Sam 4.
| Person | Hours | Calculation | Share |
|---|---|---|---|
| Alex | 8 | $480 × 8/18 | $213.33 |
| Jordan | 6 | $480 × 6/18 | $160.00 |
| Sam | 4 | $480 × 4/18 | $106.67 |
Use the free hours-based tip pool calculator →
Handle the final cents deliberately
Proportional results often include fractions of a cent. Round to cents and assign any remaining cent to the largest fractional remainders so the individual amounts add back to the exact distributable pool.
Equal split vs hours worked
Equal splitSame amount per person
Simple, but ignores different shift lengths.
Hours-based splitSame value per hour
Accounts for time but not role weighting.
The formula does not decide eligibility
Workplace policy and applicable law determine who participates and which hours count. Under U.S. federal rules, mandatory tip-pool eligibility depends partly on whether the employer takes a tip credit; state law may be more protective.
Keep your personal share with the shift.
TipHaven tracks net tips, hours and true hourly earnings privately.
Get TipHaven ↗Source and note
The math is general; eligibility and required distribution practices depend on the workplace and applicable law.