Auto-gratuity calculator for large parties.
Bill says “18% gratuity added for parties of 6 or more”? Enter the subtotal and see the gratuity, the tax, the total, what each person owes — and what an optional extra tip would add.
The auto-gratuity is the tip. You don’t need to add anything on the tip line. Typical US policy: 18–20% for parties of 6 or more, on the pre-tax subtotal.
Optional thank-you for exceptional service: 2–5% extra, ideally in cash to the server.
What an automatic gratuity actually is
An automatic (or “auto”) gratuity is a charge the restaurant adds to large-party checks so the server is paid fairly for a table that takes hours, needs extra hands, and blocks other tables. You’ll see it as a separate line — Gratuity, Service charge or Large party 18% — above or below the tax. The tip line further down is usually blank or crossed out for that reason.
For tax purposes the IRS treats a mandatory charge like this as a service charge rather than a tip (Rev. Rul. 2012-18), so it is paid to staff through payroll. That doesn’t change what you pay. It does mean that if you want to give the server something extra, cash handed over directly is the clearest way to do it.
Typical policies
| Setting | Typical charge | Notes |
|---|---|---|
| Casual or chain restaurant, 6–8+ guests | 18% | Some chains never add one; others start at 8. |
| Full-service / upscale, 6+ guests | 18–20% | Six is the most common threshold. |
| Big-city fine dining, 5+ guests | 20–22% | Sometimes applied to every table. |
| Private dining, banquets, events | 20–25% | Contracted service charge; may include an admin fee. |
| Cruise ship bars & dining | 18–20% | Added to every check, regardless of party size. |
Worked examples
Example 1 — Party of 6, 20% on pre-tax
Example 2 — Party of 8, 18%: pre-tax vs. post-tax
Small on any one bill, but if the gratuity line is bigger than the stated percentage of the subtotal, it was probably calculated on the post-tax total.
Example 3 — Party of 10, 18% + a 2% thank-you
Should you add more on top?
Not by default. The percentage on the bill is the tip the restaurant has decided is fair for a party your size, and it already sits in the normal 18–20% range. Add something extra when the server clearly went further: a long celebration that ran past closing, lots of separate payments, allergy-heavy orders, a cake they cut and plated. 2–5% of the subtotal — or a round $20–$50 in cash for a big table — is a generous thank-you. If service was poor, talk to the manager before paying; managers can and often do reduce the charge for a real problem.
How to split it fairly
If everyone ordered roughly the same, divide the final total (with tax and gratuity) by the number of people — the calculator above does that. If orders were very uneven, use Split by share on the main tip calculator and enter the auto-gratuity as the tip percentage, or follow the share-split example on the group-dining page. Remember to add tax to the bill first if you’re entering the subtotal.
FAQ
What does “18% gratuity added for parties of 6 or more” mean?
If six or more guests are seated together, the restaurant automatically adds 18% of the bill as the gratuity. It appears as its own line — Gratuity, Service charge or Large party — usually calculated on the pre-tax food and drink subtotal.
If gratuity is already added, do I still tip?
No. The automatic gratuity is the tip, so leave the tip line blank or put a dash through it. Adding a little more is optional, for service that went beyond the usual.
Is auto-gratuity calculated before or after tax?
Most restaurants calculate it on the pre-tax subtotal. Some point-of-sale systems apply it to the post-tax total, which makes it slightly larger. Use the toggle in the calculator to see the difference, and ask if the line looks high.
What party size triggers an automatic gratuity?
Six is the most common threshold in the US, but policies range from five to eight guests, and some restaurants never add one. Large events and banquets almost always carry a service charge regardless of size. The policy is usually printed on the menu or website.
Do children count toward the party size?
Usually yes — most restaurants count every seated guest. Some exclude infants or count only adults; ask if one small child is the difference.
Is it cheaper to get separate checks?
No. The gratuity is based on the size of the party, not the number of checks, so separate checks are normally charged the same percentage.
Does a banquet or event “service charge” go to the staff?
Not always. Event contracts often list a service charge and sometimes an administrative fee; part of either may be kept by the venue. Ask how it is distributed, and tip the servers or bartenders directly if you want to be sure they’re thanked.