EPS Calculator
Calculate basic earnings per share from net income attributable to common shareholders and weighted-average common shares. Compare it with a previous period if useful.
Results
Basic earnings per share formula
Basic EPS = (net income − preferred dividends) ÷ weighted-average common shares outstanding. If the income statement already reports net income attributable to common shareholders, divide that amount directly by weighted-average basic shares.
Use income and shares from the same entity, reporting period, currency, and basic-EPS basis. The share count is a weighted average over the period, not necessarily the ending shares shown on the balance sheet.
Checked examples
| Inputs | Calculation | Basic EPS |
|---|---|---|
| $1,500,000 income attributable to common; 1,000,000 weighted-average shares | $1,500,000 ÷ 1,000,000 | $1.500000 per share |
| $1,650,000 net income; $150,000 preferred dividends; 1,000,000 shares | ($1,650,000 − $150,000) ÷ 1,000,000 | $1.500000 per share |
| −$500,000 loss attributable to common; 1,000,000 shares | −$500,000 ÷ 1,000,000 | −$0.500000 per share |
How to use and interpret EPS
Choose the direct method when you already have income attributable to common shareholders. Choose the second method when you have net income before preferred dividends. Enter the weighted-average basic share count for that same period. A positive result is earnings per common share; a negative result reflects a loss attributable to common shareholders.
When a previous-period EPS is entered, the calculator shows the absolute change per share. It calculates percentage change only when previous EPS is positive; a relative growth rate from zero or negative EPS is not meaningful under this simple comparison.
Limits and assumptions
- Monetary inputs must be between −$1,000,000,000,000 and $1,000,000,000,000 with at most two decimal places.
- Weighted-average shares must be greater than zero and no more than 1,000,000,000,000; up to six decimal places are accepted.
- Preferred dividends cannot be negative. If preferred dividends exceed net income, the resulting loss available to common shareholders is still calculated.
- EPS is rounded to six decimal places per share. Currency selection only changes display formatting.
- This tool calculates basic EPS only. Diluted EPS may require evaluating options, warrants, convertible securities, contingently issuable shares and anti-dilution rules; those adjustments are not modeled here.
- It does not retrieve filings, adjust for stock splits, determine accounting treatment, or provide investment advice. Use the reported weighted-average share count and reconcile to the applicable reporting framework.
EPS alone does not indicate whether a stock is under- or overvalued. Compare consistent periods and share bases; use the linked valuation tools only as separate measures.
Frequently asked questions
Is EPS the same as net income?
No. EPS divides income available to common shareholders by the weighted-average common shares for the period.
Why subtract preferred dividends?
Basic EPS measures income attributable to common shareholders. Preferred dividends are deducted from net income when the starting figure includes them.
Does this calculate diluted EPS?
No. Diluted EPS uses a diluted share denominator and applies instrument-specific inclusion and anti-dilution rules. This calculator is limited to basic EPS.
Related calculators
- P/E Ratio Calculator — compare share price with EPS.
- Dividend Calculator — estimate dividend yield and income.
- Return on Assets Calculator — compare net income with assets.
- Discounted Cash Flow Calculator — model projected cash flows and an implied value.