Finance

Instant, private, and free

EPS Calculator.

Calculate earnings per share from net income and weighted shares.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Net income

Preferred dividends

Weighted-average shares

Earnings per share

$0.0000$

FAQs

How does the eps calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

Use Cases

Investor Performance Analysis

Investors use EPS to gauge a company's profitability on a per-share basis, comparing it to historical performance or industry peers.

Example: Compare EPS of two companies in the same sector to see which is more profitable per share.

Financial Reporting Preparation

Companies calculate basic EPS for income statement reporting, especially for public companies required to disclose EPS under accounting standards.

Example: Prepare the EPS figure for the annual report using net income and share data.

Frequently Asked Questions

What is the formula for basic EPS?: Basic EPS = (Net Income - Preferred Dividends) / Weighted-Average Common Shares. This formula shows the profit attributable to each common share, excluding preferred dividends.
Why are preferred dividends subtracted from net income?: Preferred dividends are subtracted because they are paid to preferred shareholders before common shareholders. EPS measures earnings available to common shareholders only.
What are weighted-average common shares?: Weighted-average common shares account for changes in the number of shares outstanding during the period, such as issuances or buybacks, giving a more accurate per-share figure.

Tips & Common Mistakes

Tips

Ensure net income is after taxes and interest, as reported on the income statement.
Use the weighted-average number of common shares outstanding during the period, not just the ending balance.
If preferred dividends are cumulative, subtract them even if not declared, as they are still owed.
Double-check that preferred dividends are for the same period as net income.

Common Mistakes to Avoid

Using total shares outstanding at year-end instead of the weighted-average, which can distort EPS.
Forgetting to subtract preferred dividends, overstating earnings available to common shareholders.
Including one-time gains or losses in net income without adjusting, which may mislead EPS comparisons.

Last updated: August 13, 2026

Use Cases

Investor Performance Analysis

Investors use EPS to gauge a company's profitability on a per-share basis, comparing it to historical performance or industry peers.

Example: Compare EPS of two companies in the same sector to see which is more profitable per share.

Financial Reporting Preparation

Companies calculate basic EPS for income statement reporting, especially for public companies required to disclose EPS under accounting standards.

Example: Prepare the EPS figure for the annual report using net income and share data.

Frequently Asked Questions

What is the formula for basic EPS?

Basic EPS = (Net Income - Preferred Dividends) / Weighted-Average Common Shares. This formula shows the profit attributable to each common share, excluding preferred dividends.

Why are preferred dividends subtracted from net income?

Preferred dividends are subtracted because they are paid to preferred shareholders before common shareholders. EPS measures earnings available to common shareholders only.

What are weighted-average common shares?

Weighted-average common shares account for changes in the number of shares outstanding during the period, such as issuances or buybacks, giving a more accurate per-share figure.

Tips & Common Mistakes

Tips

Ensure net income is after taxes and interest, as reported on the income statement.
Use the weighted-average number of common shares outstanding during the period, not just the ending balance.
If preferred dividends are cumulative, subtract them even if not declared, as they are still owed.
Double-check that preferred dividends are for the same period as net income.

Common Mistakes to Avoid

Using total shares outstanding at year-end instead of the weighted-average, which can distort EPS.
Forgetting to subtract preferred dividends, overstating earnings available to common shareholders.
Including one-time gains or losses in net income without adjusting, which may mislead EPS comparisons.

Finance

Instant, private, and free

EPS Calculator.

Calculate earnings per share from net income and weighted shares.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Net income

Preferred dividends

Weighted-average shares

Earnings per share

$0.0000$

FAQs

How does the eps calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

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Use Cases

Investor Performance Analysis

Investors use EPS to gauge a company's profitability on a per-share basis, comparing it to historical performance or industry peers.

Example: Compare EPS of two companies in the same sector to see which is more profitable per share.

Financial Reporting Preparation

Companies calculate basic EPS for income statement reporting, especially for public companies required to disclose EPS under accounting standards.

Example: Prepare the EPS figure for the annual report using net income and share data.

Frequently Asked Questions

What is the formula for basic EPS?: Basic EPS = (Net Income - Preferred Dividends) / Weighted-Average Common Shares. This formula shows the profit attributable to each common share, excluding preferred dividends.
Why are preferred dividends subtracted from net income?: Preferred dividends are subtracted because they are paid to preferred shareholders before common shareholders. EPS measures earnings available to common shareholders only.
What are weighted-average common shares?: Weighted-average common shares account for changes in the number of shares outstanding during the period, such as issuances or buybacks, giving a more accurate per-share figure.

Tips & Common Mistakes

Tips

Ensure net income is after taxes and interest, as reported on the income statement.
Use the weighted-average number of common shares outstanding during the period, not just the ending balance.
If preferred dividends are cumulative, subtract them even if not declared, as they are still owed.
Double-check that preferred dividends are for the same period as net income.

Common Mistakes to Avoid

Using total shares outstanding at year-end instead of the weighted-average, which can distort EPS.
Forgetting to subtract preferred dividends, overstating earnings available to common shareholders.
Including one-time gains or losses in net income without adjusting, which may mislead EPS comparisons.

Last updated: August 13, 2026