Calculate the Right Tip in Canada
A gratuity, or more commonly known as tip, is a sum of money given to a person that performed a service. It is a practice found in certain industry sectors. The amount disbursed is a way for the consumer to express their satisfaction on the quality of the service received. In Canada, the standard is 15% on the amount before taxes and 20% if the quality of the service surpasses expectation.
Thanks to wireless technology, we have nowadays the option of processing online payments directly from bank accounts (Interac) or credit card, from wherever we are. At the time of processing a transaction, payment terminals are presented to you by the vendor, and actually brought to your table in the case of restaurants, which gives you the option of adding a tip, in percentage or in cash. The option of using the percentage of 15% saves us the trouble from calculating it ourselves, however, the machine applies automatically the percentage on the invoice including taxes, which actually increases the tip you intended to give.
The sales taxes in Canada are in average 13%, so if you pay by credit or debit card using the payment terminal and insert a tip of 15%, the actual percentage you give away is closer to 17%, which ends up being pretty good for a standard service. It is your right to know how much you are really giving in tip.
Each Canadian province has a different sales tax rate, consequently, the percentage applied on the amount including taxes will differ from one province to another. A 15% tip won't be the same in Alberta and in Quebec for example, but yet, the message you want to send through as a consumer is that you're giving 15%.
You can, with this calculator, obtain the percentage applicable on the amount including taxes or simply get the right amount of your tip. With the result, you can insert the amount of money or the percentage in the payment terminals in order to allocate the right tip. The advantage of remembering the percentage is that you can use it on any other bill after.
Don't let a machine dictate the amount of your tip; find it yourself with the help of this calculator. You just have to insert the total bill, including taxes, the Canadian province where the transaction is taking place, the percentage of the tip desired, and you will obtain the real percentage or the amount of money you have to put in the payment terminal in order to give the right tip. You won't have to do the calculation yourself anymore and will always give the right tip on your next transactions.
Please change the suggested values with your own in the blue text boxes.
Our financial calculators start with default values to suggest what to enter typically in each modifiable field, displayed as blue text boxes, in order to simulate a common scenario. Please change those values with your own. To keep track of your changes, the blue box will turn gray after they are modified.
You will also notice that our calculators behave like financial applications and recalculate automatically all values with each change instead of having to click on some extra button or going to a new result page, this is intentional and helps understand the effect of one change with the overall result in a more dynamic and instantaneous manner.
However, charts in our older calculators are not updated automatically, so if there is an "Update" button next to the chart, make sure to click on it after you make a change before you analyze it.