Quick example
$100 bill with 18% automatic gratuity
Automatic gratuity: $18.00. If sales tax is 8%, tax is $8.00. Estimated total before any optional extra tip: $126.00.
Simple guide
Automatic Gratuity vs Tip: What Is the Difference?
A charge labeled automatic gratuity is often added by the business. Check the receipt to see whether it is required. A tip is a voluntary amount chosen by the customer.
Simple difference
A tip is chosen by the customer. Automatic gratuity or a service charge can be added by the business. Read the receipt before adding a voluntary amount.
Do you need to tip extra?
Read the receipt first. When it lists the charge as required, include it in the bill before deciding whether you want to add a voluntary tip.
Where it appears
Where automatic gratuity appears
You may see automatic gratuity on large-party restaurant checks, banquet invoices, hotel room service bills, bottle service receipts, and event bills. The wording can vary by business.
Before adding more
Read the receipt line by line
Look for words such as automatic gratuity, service charge, included gratuity, or service fee. If you are not sure whether it goes to staff, ask the business before adding an extra tip.
Receipt wording
Words you may see on a receipt
Different businesses use different words. Check the line item before paying.
Automatic gratuity
A percentage or amount that a business may add for a large group or event. Check the receipt to see whether it is required.
Service charge
A business-added charge. It is not automatically the same as a voluntary tip.
Optional tip
A voluntary amount you choose to add after reviewing the bill.
Payment choice
How to decide what to pay
First, add the bill subtotal, tax, and included charge to understand the required total. Then decide whether an additional voluntary amount makes sense for the service you received. This keeps the required charge separate from any extra amount you choose.
Common confusion
Why the wording matters
A receipt may call the line automatic gratuity, service charge, service fee, or included gratuity. Those words can affect how the business treats the charge. For a personal bill estimate, the safest step is to enter the printed amount exactly as shown.
Automatic gratuity FAQs
Is automatic gratuity the same as a tip?
A charge labeled automatic gratuity is often added by the business. A voluntary tip is chosen by the customer. Check the receipt to see whether the charge is required.
Do I need to add an extra tip if automatic gratuity is included?
Check the receipt first. When it lists the charge as required, include it in the bill before deciding whether to add a voluntary tip.
Why do restaurants add automatic gratuity?
Restaurants often add automatic gratuity for large parties, banquets, events, or special services where the business wants a fixed service amount.
Should I ask the restaurant if I am unsure?
Yes. If the receipt wording is unclear, ask the business whether the listed charge is required. USTipCalc does not determine where a charge goes.