Quick answer
Earnings per share = (net income − preferred dividends) ÷ weighted average shares outstanding. Net income of $500,000, $50,000 of preferred dividends and 1,000,000 shares give EPS of $0.45.
Enter net income, preferred dividends and weighted average shares. The calculator returns EPS.
How to use the Earnings per Share Calculator
- Enter net income ($).
- Enter preferred dividends ($) (0 or more).
- Enter weighted average shares outstanding (above 0).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Net income | A number, in $ | — |
| Preferred dividends | A number, in $ | ≥ 0 |
| Weighted average shares outstanding | A number | > 0 |
Formula and method
Formula
EPS = (net income − preferred dividends) ÷ weighted average shares
IEEE-754 double precision; shown to the decimals indicated.
Basic EPS; diluted EPS needs convertible securities.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Net income = 500000; Preferred dividends = 50000; Weighted average shares outstanding = 1000000.
| Result | Value |
|---|---|
| Earnings per share | $0.45 |
Example 2
Inputs: Net income = 1200000; Preferred dividends = 0; Weighted average shares outstanding = 400000.
| Result | Value |
|---|---|
| Earnings per share | $3.00 |
The first line is the headline result (earnings per share). IEEE-754 double precision; shown to the decimals indicated.
Weighted average shares
Use the average number of shares over the period, not the count at the end. A company that issued shares half-way through the year counts them for half the year.
Basic and diluted
This is basic EPS. Diluted EPS also counts shares that could be created from options and convertibles, so it is lower. EPS also depends on accounting choices, so compare it with other measures.
How the result changes with net income
Holding every other input at the first worked example, this table changes only net income. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Net income | Earnings per share |
|---|---|
| 250000 | $0.20 |
| 500000 | $0.45 |
| 1000000 | $0.95 |
| 2000000 | $1.95 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Weighted average shares outstanding: entering "0" shows "Weighted average shares outstanding must be greater than 0." beside that field and no result.
- Net income: left empty shows "Enter net income." beside that field and no result.
Choosing between the Earnings per Share Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
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Assumptions and limitations
- Basic, not diluted
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for weighted average shares outstanding and net income to confirm this.
Frequently asked questions
What is a good EPS?
Compare it with past years and peers.
What is P/E?
Share price divided by EPS.
Can EPS be negative?
Yes. A net loss makes earnings per share negative.
What does the Earnings per Share Calculator calculate?
Basic earnings per share. It returns Earnings per share.
What formula does the Earnings per Share Calculator use?
EPS = (net income − preferred dividends) ÷ weighted average shares. Basic EPS; diluted EPS needs convertible securities.
What do I need to enter in the earnings per Share Calculator?
You enter Net income ($), Preferred dividends ($) and Weighted average shares outstanding.
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. Basic, not diluted.
What is an example of a earnings per Share result?
With net income 500000, preferred dividends 50000 and weighted average shares outstanding 1000000, the earnings per share is $0.45.
Where does the method come from?
The method follows: OpenStax, Principles of Accounting, Volume 1: Financial Accounting (Rice University).
Related calculators
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Sources
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (Rice University)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.