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Buyback Impact Calculator

Work out buyback impact instantly with clear inputs, formula shown and shareable results.

About Buyback Impact Calculator

A buyback returns cash by retiring shares, so the same profit is divided among fewer of them and earnings per share rises. It only creates value if the shares are bought below intrinsic value — otherwise it merely flatters the per-share numbers.

Formula

Buyback effect

Shares retired = amount / price; new EPS = net income / (shares - retired)

Worked example

With the default values below, Buyback Impact Calculator returns Earnings Per Share After The Buyback of $112.5000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Shares Outstandingaccepts 1–100,000,000,000
10,000,000
Amount Spent On Buybackminimum 0
500,000,000
Buyback Price Per Shareminimum 0
250
Annual Net Incomeminimum 0
900,000,000

Results

Earnings Per Share After The Buyback
$112.5000
Shares Repurchased
2,000,000
Increase In Earnings Per Share
25.000%
Shares Outstanding After
8,000,000

Step by step

  1. 1Values used
  2. 2Buyback effect
  3. 3Earnings Per Share After The Buyback= 112.5000
  4. 4Shares Repurchased= 2,000,000
  5. 5Increase In Earnings Per Share= 25.000
  6. 6Shares Outstanding After= 8,000,000

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Is EPS growth from a buyback real?

Arithmetically yes, economically only if the price paid was below value. Cash spent is cash no longer available.

Buyback or dividend?

Buybacks are flexible and can be tax-efficient for shareholders; dividends signal a firmer commitment to distribution.

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