Introduction
Earnings per share, or EPS, shows how much profit a company makes for each share of its stock. It is one of the fastest ways to see if a business is doing well. This EPS calculator turns net income into a per-share figure.
Type in the net income, any preferred dividends, and the number of shares. That gives you basic EPS. If you add dilutive shares from options or convertible notes, you also get diluted EPS. Add a stock price and you get the P/E ratio too.
You can add more than one period, like FY 2024 and FY 2025, and see them side by side in a table and a chart. You can also compare EPS for a few different companies at once. Each answer comes with step-by-step math, so you can check the work or learn how the formula works.
How to use our EPS Calculator
Enter your net income, preferred dividends, and share counts for each period. The calculator shows your basic EPS, diluted EPS, a step-by-step solution, a P/E ratio, a comparison table, and a chart.
Currency Symbol: Pick the money sign you want to see, like $, £, €, or ¥. Choose "None" if you want no symbol at all.
Stock Price: Type the current share price to get the price-to-earnings (P/E) ratio. Leave it blank if you only want EPS.
Period Label: Name the period, such as FY 2025 or Q3 2025. This name shows up in the results, table, and chart.
Net Income (I): Enter the profit the company earned in that period. You can find this at the bottom of the income statement.
Preferred Dividends (D): Enter the dividends paid to preferred shareholders. This money is taken out first, so it lowers EPS. Leave it at 0 if there are none.
Weighted Average Shares Outstanding (S): Enter the average number of common shares during the period. This must be 1 or more, since it is the bottom of the EPS formula.
Dilutive Securities / Additional Shares (DS): Enter the extra shares that would exist if options, warrants, or convertible bonds were used. This gives you diluted EPS. Leave it at 0 to skip it.
Add Period: Click this to add another year or quarter. With two or more periods, you also get average EPS, high and low periods, and the change from one period to the next.
Company Name: In the multi-company section, type the name of each company you want to compare.
Company Net Income, Preferred Dividends, and Shares Outstanding: Enter these three numbers for each company. The table then shows the basic EPS for every company side by side.
Calculate and Reset: Results update as you type, but you can click Calculate any time. Click Reset to bring back the sample numbers and start over.
What Is Earnings Per Share (EPS)?
Earnings per share, or EPS, shows how much profit a company earns for each share of its common stock. It turns one big number (net income) into a small number you can compare from year to year, or between two companies. A rising EPS usually means the company is making more money for its owners.
The EPS Formula
Basic EPS uses three pieces of information:
Basic EPS = (Net Income − Preferred Dividends) ÷ Weighted Average Shares Outstanding
- Net income is the profit left after all costs and taxes.
- Preferred dividends are payments owed to preferred shareholders. They get paid first, so this money is taken out.
- Weighted average shares is the average number of common shares during the period. It is an average because companies may issue or buy back shares partway through the year.
Basic EPS vs. Diluted EPS
Some companies have stock options, warrants, or convertible bonds. If those are used, new shares appear and the same profit gets split more ways. Diluted EPS adds those extra shares to the bottom of the formula:
Diluted EPS = (Net Income − Preferred Dividends) ÷ (Shares + Dilutive Securities)
Diluted EPS is always the same as or lower than basic EPS. Investors often look at diluted EPS because it shows the worst realistic case.
EPS and the P/E Ratio
EPS is also used to judge if a stock price is cheap or costly. Divide the stock price by EPS to get the price-to-earnings (P/E) ratio:
P/E = Stock Price ÷ EPS
A P/E of 20x means investors pay $20 for every $1 of yearly earnings. P/E only makes sense when EPS is positive.
How to Read Your Results
- Positive EPS means the company made a profit per share.
- Negative EPS means it lost money per share.
- EPS near zero means it about broke even.
Things to Keep in Mind
EPS can go up even when sales do not grow. If a company buys back its own shares, the share count drops and EPS rises. One-time events, like selling a building, can also lift EPS for a single year. Compare EPS across several periods, and compare it with other companies in the same industry, before making a decision.