Earnings Per Share Calculator

Work out earnings per share instantly with clear inputs, formula shown and shareable results.

About Earnings Per Share Calculator

Earnings per share divides the profit belonging to common shareholders — net income less preferred dividends — by the weighted average share count. The diluted figure adds shares that options and convertibles could create, which is the more conservative measure.

Formula

EPS

Basic = (Net income - preferred dividends) / weighted average shares; Diluted adds potential shares

Worked example

With the default values below, Earnings Per Share Calculator returns Basic Earnings Per Share of $3.5833. Change any input above and every figure here is recalculated in your browser.

Inputs used

Net Incomeminimum 0: 45,000,000
Preferred Dividendsminimum 0: 2,000,000
Weighted Average Sharesaccepts 1–100,000,000,000: 12,000,000
Potential Dilutive Sharesaccepts 0–100,000,000,000: 500,000

Results

Basic Earnings Per Share: $3.5833
Diluted Earnings Per Share: $3.4400
Earnings Available To Common Shareholders: $43,000,000.00
Dilution Effect: 4.000%

Step by step

1Values used
2EPS
3Basic Earnings Per Share= 3.5833
4Diluted Earnings Per Share= 3.4400
5Earnings Available To Common Shareholders= 43,000,000.00
6Dilution Effect= 4.000

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, fees or charges or compounding frequency 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

Why use a weighted average share count?

Because shares issued or bought back mid-year were only outstanding for part of it.

Which EPS should be used for valuation?

Diluted, since existing option and convertible holders have a real claim on future earnings.