What you really make per hour

Your wage plus your tips, minus what you tipped out, divided by the hours you were paid for. One shift or a whole week.

Work it out for
Time worked
Pay and tips

You walked with

$348.56

6 h 50 min paid · $2.13 an hour

Real hourly$51.01per hour

Guest tips$410.00Tip-outs given$76.00Wages$14.56Earned$348.56

The math, step by step

  1. Paid time7 h 5 min − 15 min break6 h 50 min
  2. Wages6 h 50 min × $2.13$14.56
  3. Tips$92.00 cash + $318.00 card$410.00
  4. Net tips$410.00 − $76.00 tipped out$334.00
  5. Earned$334.00 + $14.56$348.56
  6. Real hourly$348.56 ÷ 6 h 50 min$51.01

Tips add $48.88 to every paid hour on top of your $2.13 wage.

Track this every shift in TipCup.

How the example adds up

The calculator opens on the example shift from the TipCup app: in at the start of dinner, out 7 h 5 min later with a 15-minute unpaid break, so 6 h 50 min paid. At $2.13 an hour that's $14.56 in wages. Tips were $410.00 and $76.00 went out in tip-outs, leaving $334.00.

Together that's $348.56, or $51.01 an hour. The wage is $14.56 of it. If you judge a job by the hourly rate in the offer, you're looking at the smallest part of what it pays.

Divide by paid hours

Use the hours on your timesheet, not the hours you were in the building. Leave the 15-minute break in the paid time and the same night reads $49.28 an hour instead of $51.01. Small per shift, but it's the number you'd use to compare two jobs.

A whole week

Switch to "A whole week" and enter the week's totals. Five shifts like the one above come to 34 h 10 min, $1,742.78 and $51.01 an hour. Overtime isn't included here: every hour is counted at the wage you enter.

About the $2.13 wage

Federal law lets an employer pay a tipped employee a cash wage of $2.13 an hour, as long as wage plus tips reaches the $7.25 federal minimum wage for the week (Department of Labor Fact Sheet #15). Many states set a higher cash wage, so enter the rate on your own pay stub.

Every amount on this page comes from the same calculation code as the TipCup app, run in your browser. Nothing you type leaves this page.

Questions people ask

How do I work out my hourly wage with tips?

Add your wages and your tips, take off what you tipped out, and divide by the hours you were paid for. 6 h 50 min at $2.13 is $14.56 in wages; with $334.00 in tips after tip-outs, that's $348.56, or $51.01 an hour.

Should I count my unpaid break?

No. Divide by paid time only. Counting a 15-minute break on that shift would show $49.28 an hour instead of $51.01.

Does this include overtime or taxes?

No. Every hour is paid at the wage you enter, and the result is before taxes. Overtime and withholding are on your pay stub.

Guides with worked examples

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