How do you add tip to a price?

Calculating the Final Cost with Tip

In hospitality settings, it is customary to add a tip to the bill amount to express appreciation for the service received. The tip amount is a percentage of the original cost, which is then added to determine the final payment.

Step 1: Determine the Tip Percentage

The tip percentage can vary based on the level of satisfaction with the service provided. Common tip percentages include:

• 15-20% for good service
• 20-25% for exceptional service
• 10-15% for unsatisfactory service

Step 2: Multiply by the Tip Percentage plus One

To calculate the final cost, multiply the bill total by a factor that represents the desired tip percentage plus one. For example, to add a 15% tip to a bill of $50:

• Multiplier: 1 + (15/100) = 1.15
• Final Cost: $50 x 1.15 = $57.50

Example Calculations:

• To add a 20% tip to a bill of $75:

  • Multiplier: 1 + (20/100) = 1.20
  • Final Cost: $75 x 1.20 = $90

• To add a 10% tip to a bill of $35:

  • Multiplier: 1 + (10/100) = 1.10
  • Final Cost: $35 x 1.10 = $38.50

Conclusion

Calculating the final cost with tip is a simple process involving multiplying the bill total by a factor representing the desired tip percentage plus one. This ensures that the tip is accurately calculated and the server receives fair compensation for their services.