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How to calculate a tip and total in Excel and Google Sheets

Topic:Finance basics
Excel & Google Sheets
=ROUND(A2*B2,2)

Verified example

Computed by a real spreadsheet engine on the sample data below.

SubtotalTip RateTip AmountGrand Total
850.18
1200.2
450.15
2000.18

=ROUND(A2*B2,2)15.3

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Step by step

  1. 1Column A = Subtotal (bill before tip), Column B = Tip Rate (e.g., 0.18 for 18%).
  2. 2In C2 enter =ROUND(A2*B2,2) for the tip amount.
  3. 3In D2 enter =ROUND(A2*(1+B2),2) for the grand total.
  4. 4Format columns C and D as Currency.

Tips

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Frequently asked

How do I split the tipped total among several people?

Add a People column (E) and in F2 enter =ROUND(D2/E2,2) to get each person's share.

Should I calculate tip on the pre-tax or post-tax amount?

Customary practice varies — in the US, tipping on the pre-tax subtotal is common; adjust which amount you use in column A accordingly.

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Formulas used

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