Earnings Per Share Calculator

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Earnings Per Share

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What is Earnings Per Share ?

Earnings per share allocates earnings available to common shareholders across common shares.

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How to Use This Calculator

  1. Enter or select Net Income, Dividends, Common share.
  2. Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
  3. Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used

EPS = (net income−preferred dividends)/common shares
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Variables Explained

InputWhat it means
Net IncomeEarnings after the relevant expenses, interest and taxes for the reporting period.
DividendsUse the measured or stated value for this item, with the unit or category shown beside the field.
Common shareUse the measured or stated value for this item, with the unit or category shown beside the field.
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Worked Example

Income of 500,000 less preferred dividends of 50,000 across 100,000 shares gives EPS=4.50.

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Why Use This Calculator?

Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.

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Common Mistakes

    • Basic EPS normally uses weighted-average shares; diluted EPS may require additional adjustments.
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Frequently Asked Questions

Should I use monthly or annual figures?

Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.

Does the result include fees and tax?

Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.

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Sources & References