Artists and barbers often tip out an apprentice or assistant a percentage of their tips (or service revenue). The tip-out is a simple percentage, kept honest by rounding to the cent.
The example
$180 tips, 10% tip-out.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | 180 × 10% | — |
| 3 | Tip-out | → $18.00 |
The formula
The formula:
How it works
How it works:
- Decide the base: tip-out on tips, or on service revenue — state it clearly.
- Multiply by the tip-out percentage and ROUND to cents.
- The artist keeps the rest: tips − tip-out.
- For a pool, split the tip-out by hours or points like any tip pool.
Agree the base and percentage up front — it prevents end-of-day friction. Tipping out 10% “of tips” and 10% “of service revenue” are very different numbers, so the shop policy should name the base, the percentage, and who gets it. Round to the cent so the handoff is clean, and if multiple assistants share, split the tip-out by hours worked like any pool. Clarity here keeps the chair drama-free.
Try it: interactive demo
Tips and tip-out percentage.
Variations
Artist keeps
Tips − tip-out:
Tip-out on service
Different base:
Split a pool
By hours:
Pitfalls & errors
State the base. Tips vs service revenue — very different amounts.
Round to cents. ROUND(…, 2) on money.
Percent as decimal. 10% is 0.10.
Practice workbook
Frequently asked questions
How do I calculate a tip-out in Excel?
Is the tip-out on tips or revenue?
How do I split a tip-out pool?
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