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EPS Calculator

Our EPS Calculator calculates Basic EPS and Diluted EPS using net income, preferred dividends, and shares outstanding to evaluate company profitability and financial performance.
Earnings Per Share
$2.00

($1,000,000 - $0) / 500,000 = $2

Earnings available

$1,000,000

Shares used

500,000

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basic EPS

What is EPS Calculator?

An EPS Calculator measures Earnings Per Share (EPS) by dividing earnings available to common shareholders by weighted average shares outstanding. It helps investors compare company performance using Basic EPS and Diluted EPS.

EPS Calculator showing earnings per share, financial growth charts, company performance data, and investment calculations.

How to Use Our EPS Calculator?

Our EPS calculator instantly calculates Basic EPS or Diluted EPS using net income, preferred dividends, and shares outstanding.

Step 1

Enter Net Income

Enter your company's total net income for the reporting period.

Step 2

Add Dividends & Shares

Enter preferred dividends (if any) and the total shares outstanding.

Step 3

View & Copy Results

Instantly view and copy your earnings per share (EPS) calculation with a detailed breakdown.

Basic EPS and Diluted EPS

Basic EPS uses the current weighted average common shares outstanding. Diluted EPS also includes the effect of convertible bonds, stock options, warrants, and other dilutive securities to show the lowest possible earnings per share.

EPS Formula

Basic EPS=Net Income−Preferred DividendsWeighted Average Shares Outstanding\text{Basic EPS}=\frac{\text{Net Income}-\text{Preferred Dividends}}{\text{Weighted Average Shares Outstanding}}

Diluted EPS=Net Income−Preferred DividendsDiluted Weighted Average Shares Outstanding\text{Diluted EPS}=\frac{\text{Net Income}-\text{Preferred Dividends}}{\text{Diluted Weighted Average Shares Outstanding}}

How do you calculate EPS manually?

  1. Find net income from the income statement.
  2. Subtract preferred dividends.
  3. Identify weighted average shares outstanding.
  4. Divide earnings available by shares.

EPS=1,000,000−50,000475,000=2.00\text{EPS}=\frac{1,000,000-50,000}{475,000}=2.00

This calculation helps compare financial results, company profitability, and shareholder value across reporting periods.

How to Find Earnings Per Share on Income Statement?

Locate the company's net income near the bottom of the income statement, then identify preferred dividends and weighted average shares outstanding in the notes or earnings section. Public companies also report Basic EPS and Diluted EPS directly in annual reports, quarterly filings, and financial statements.

EPS vs Other Financial Metrics

EPS measures profit earned for each share, while other financial metrics evaluate valuation, revenue generation, profitability, liquidity, and shareholder returns. Together they provide a broader view of company performance.

PE Ratio

The Price-to-Earnings (PE) Ratio compares a company's share price with its Earnings Per Share. Investors use EPS and the PE Ratio together to assess valuation, compare businesses within an industry, and identify potentially undervalued or overvalued stocks.

Revenue

Revenue represents total sales before expenses, while EPS reflects profit available to common shareholders. A company may report strong revenue growth but lower EPS if operating costs, taxes, or interest expenses increase.

Net Income

Net income is the starting point for calculating EPS. After subtracting preferred dividends, the remaining earnings are divided by weighted average shares outstanding to determine the earnings attributable to each common share.

EBITDA

EBITDA measures operating performance before interest, taxes, depreciation, and amortization. Unlike EPS, it excludes capital structure and financing effects, making both metrics useful for evaluating different aspects of financial performance.

Cash Flow

Cash flow tracks money moving into and out of a business, while EPS measures accounting profit. Comparing operating cash flow with EPS helps investors evaluate earnings quality and the sustainability of company growth.

Dividend Per Share

Dividend Per Share shows the cash distributed to shareholders, whereas EPS measures profit generated per share. Comparing both metrics helps investors assess dividend sustainability, payout ratios, and long-term shareholder returns.

Factors That Affect Earning Per Share

Company profitability, capital structure, and changes in outstanding shares directly influence Earnings Per Share and investor analysis.

Higher profits

Higher net income generally increases EPS when the number of outstanding shares remains unchanged.

Share buybacks

Repurchasing shares reduces shares outstanding, which can increase EPS if earnings remain stable.

New share issuance

Issuing additional shares increases the share count and may reduce EPS through dilution.

Preferred dividends

Higher preferred dividends reduce earnings available to common shareholders, lowering Basic EPS.

Stock splits

A stock split increases outstanding shares while proportionally adjusting EPS without changing company value.

Share dilution

Convertible securities, stock options, and warrants increase diluted shares and typically reduce Diluted EPS.

Applications of earnings per share

Earnings Per Share helps measure company profitability, compare businesses, evaluate investments, support stock valuation, monitor earnings growth, and assess shareholder returns using financial statements.

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Frequently Asked Questions

EPS answers common questions about financial reporting, valuation, profitability, shareholder returns, and investment analysis.