EPS Calculator
Basic and diluted earnings per share.
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Enter your numbers to see the result.
This EPS calculator works out a company’s earnings per share. Enter net income, preferred dividends and the weighted average number of shares to get basic EPS, then add shares from options, warrants and convertibles to get diluted EPS. Add the share price to see the P/E ratio, in any of eight currencies.

What is a EPS Calculator?
Earnings per share (EPS) is the portion of a company’s profit allocated to each ordinary share. It is the most widely quoted measure of profitability for shareholders and the ‘E’ in the P/E ratio.
Basic EPS divides profit available to common shareholders by the weighted average number of shares outstanding. Diluted EPS also counts shares that could be created from stock options, warrants and convertible securities, showing the worst case for existing shareholders. This EPS calculator gives both.
Analysts watch EPS growth over time more than any single figure. A company that lifts EPS steadily, through higher profits rather than only through share buybacks, is usually creating value for shareholders. Comparing basic and diluted EPS also shows how much stock-based pay and convertible debt could shrink each shareholder’s slice of future profits.
How does the EPS Calculator work?
Preferred dividends are subtracted from net income because that money belongs to preferred shareholders. The result is divided by the weighted average common shares for basic EPS, and by those shares plus potential new shares for diluted EPS. If you add a share price, the P/E ratio is the price divided by EPS.
How to use the EPS Calculator step by step
- Choose your currency.
- Enter net income from the income statement.
- Enter preferred dividends.
- Enter the weighted average shares.
- Add dilutive shares and the share price if known.
- Read basic and diluted EPS and the P/E.
EPS Calculator example with real numbers
A company earned $5 million last year and paid $200,000 in preferred dividends. It had 2 million common shares on average, plus 100,000 shares that could be issued from options.
| Example input | Value |
|---|---|
| Currency | US dollar ($) |
| Net income | 5,000,000 |
| Preferred dividends | 200,000 |
| Weighted average common shares | 2,000,000 |
| Extra shares from options, warrants, convertibles | 100,000 |
| Share price (optional) | 60 |
| Example output | Value |
|---|---|
| Basic EPS | $2.40 |
| Earnings for common shareholders | $4,800,000 |
| Basic EPS | $2.4000 |
| Diluted EPS | $2.2857 |
| Dilution | 4.76% |
| P/E on basic EPS | 25.00 |
| P/E on diluted EPS | 26.25 |
The EPS calculator shows basic EPS of $2.40 and diluted EPS of $2.2857. At a $60 share price, the P/E is 25.00.
Key features of this EPS Calculator
- Basic EPS
- Diluted EPS
- Dilution percentage
- P/E on both
- 8 currencies
Who should use the EPS Calculator?
Who is this EPS Calculator for?
- Accounting and finance students
- Investors reading annual reports
- Analysts
- Company founders planning option pools
Practical use cases
- Checking reported EPS
- Seeing the effect of stock options
- Calculating P/E
- Exam and homework practice
Key benefits
- Both measures: basic and diluted.
- Linked: P/E included.
- Simple: five inputs.
- Private: runs in your browser.
Tips for better results
- Use the weighted average, not the year-end share count.
- Read the EPS note in the annual report for the official figures.
- Watch for one-off gains that inflate EPS.
- Track EPS growth over several years.
Common mistakes to avoid
- Forgetting preferred dividends.
- Using year-end shares instead of the weighted average.
- Comparing basic EPS of one company with diluted EPS of another.
- Ignoring share buybacks that raise EPS without profit growth.
Limitations of this EPS Calculator
- The treasury stock method is not applied.
- Antidilutive securities are not excluded automatically.
- Adjusted (non-GAAP) EPS is not calculated.
EPS Calculator vs other ways to calculate
| Measure | Shares used |
|---|---|
| Basic EPS | Weighted average outstanding |
| Diluted EPS | Plus potential shares |
| Adjusted EPS | Company’s own definition, excludes items |
To judge the price, use the P/E ratio calculator. To check profit margins, try the EBITDA calculator.
Privacy and data handling
This EPS Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
EPS Calculator FAQs
How do I calculate EPS?
Subtract preferred dividends from net income and divide by the weighted average number of common shares.
What is diluted EPS?
EPS that also counts shares that could be issued from options, warrants and convertibles.
Why are preferred dividends subtracted?
They are paid to preferred shareholders, so they are not available to common shareholders.
What is a good EPS?
There is no fixed number; look for steady growth and compare with peers.
Can EPS be negative?
Yes, when the company makes a loss.
Where can I find EPS?
In the income statement and EPS note of the annual or quarterly report.
Related tools
Sources and references
We checked the method and the current figures used in this EPS Calculator against these official and primary sources:
- SEC EDGAR: Company filings
- Investor.gov: Glossary
- IFRS Foundation: IAS 33 Earnings per Share
- ICAI: Institute of Chartered Accountants of India
Written and reviewed by the Qorico Team