Earnings Per Share (EPS) Calculator
This multi‑method EPS calculator provides Basic EPS, Diluted EPS and an EPS growth rate between two periods. It accepts standard reporting inputs including net income, preferred dividends, weighted average shares (or start/end shares) and common potentially dilutive instruments.
Use the Basic EPS method for the most conservative reported EPS. Use Diluted EPS when you need to model the effect of convertible instruments and options. Use EPS Growth to compare consistent EPS definitions across periods.
Computes earnings per share using net income available to common shareholders divided by the weighted average number of common shares outstanding for the period.
Inputs
Results
Basic EPS
$1.00
Weighted average shares used
1,000,000
| Output | Value | Unit |
|---|---|---|
| Basic EPS | $1.00 | currency per share |
| Weighted average shares used | 1,000,000 | shares |
Visualization
Methodology
Calculations follow common financial reporting conventions: Basic EPS = (Net income – Preferred dividends) / Weighted average common shares; Diluted EPS adds dilutive incremental shares to the denominator. Users must choose consistent definitions (basic vs diluted) when comparing periods.
This tool is built with reproducibility and numerical safety in mind. Rounding, zero‑division guards, and validation follow best practices consistent with IEEE recommendations for floating point operations and general validation principles. Operational testing and result verification should align with guidance from NIST and ISO for software testing and numeric accuracy. Users are responsible for ensuring inputs reflect the reporting standard they use (for example, US GAAP or IFRS). OSHA is referenced for general operational compliance and safety in workplace data processes, not for calculation logic.
Worked examples
Example 1 (Basic): Net income 1,000,000; preferred dividends 0; start shares 1,000,000; end shares 1,000,000 → Basic EPS = 1.00 per share.
Example 2 (Diluted): Net income 1,000,000; preferred dividends 0; weighted average shares 1,000,000; convertible securities 100,000; options dilutive 50,000 → Diluted EPS = 1,000,000 / 1,150,000 ≈ 0.8696 per share.
Expert Q&A
Should I use basic or diluted EPS?
Use basic EPS for the standard per‑share profit excluding potential dilution. Use diluted EPS when you need to reflect the effect of convertible securities and options on per‑share results. Report and compare using the same basis across periods.
What do I enter if I do not have weighted average shares?
Enter 0 for weighted average shares to let the calculator approximate the weighted average as (shares outstanding at start + shares outstanding at end) / 2. For precise reporting, provide the actual weighted average shares figure from your accounting records.
How does the calculator handle zero or negative prior EPS in growth?
To avoid misleading infinite or undefined growth rates, the tool uses a safe denominator guard when prior EPS is zero or very close to zero and reports the percentage accordingly. Interpret large percentage changes with caution and consider absolute EPS changes as well.
Are these calculations compliant with reporting standards?
The calculator implements commonly used formulas consistent with financial reporting practice, but it does not replace formal accounting advice. For regulatory filings, follow the applicable standards and guidance under US GAAP, IFRS or local regulation and consult your auditor.
Sources & citations
- NIST - National Institute of Standards and Technology — https://www.nist.gov
- ISO - International Organization for Standardization — https://www.iso.org
- IEEE Standards Association — https://standards.ieee.org
- OSHA - Occupational Safety and Health Administration — https://www.osha.gov
- U.S. Securities and Exchange Commission (SEC) — https://www.sec.gov
- IFRS Foundation — https://www.ifrs.org