{
  "id": "eps",
  "version": "1c45c8dcbb5d",
  "status": "published",
  "name": "EPS Calculator",
  "question": "What is my EPS?",
  "summary": "Computes basic and diluted earnings per share (EPS) from net income, preferred dividends, weighted average shares and dilutive securities.",
  "category": "finance",
  "subcategory": "investing",
  "url": "https://www.acalculator.org/finance/eps-calculator",
  "markdown": "https://www.acalculator.org/finance/eps-calculator.md",
  "kind": "function",
  "method": "Earnings = net income − preferred dividends. Basic EPS = earnings ÷ weighted average common shares. Diluted EPS = (earnings + earnings added back) ÷ (weighted shares + dilutive shares); if that is more than basic EPS, diluted EPS = basic EPS.",
  "assumptions": [
    "You enter the dilutive securities as one group of added shares and one earnings add-back, after leaving out any that are antidilutive on their own or in the ranked order; the calculator checks only the group as a whole.",
    "No discontinued operations: the antidilution test uses earnings to common stockholders.",
    "Arithmetic is exact on the typed decimals; EPS shows to the cent, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "ni": {
        "title": "Net income",
        "description": "Profit for the period after every expense, interest and tax. Negative for a loss.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "pref": {
        "title": "Preferred dividends",
        "description": "Preferred dividends for the period, taken off net income: on cumulative preferred stock the full dividend, declared or not; on non-cumulative only if declared. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "sh": {
        "title": "Weighted average common shares",
        "description": "Common shares outstanding, each weighted by the part of the period it was outstanding.",
        "type": "number",
        "exclusiveMinimum": 0,
        "maximum": 10000000000000
      },
      "dil": {
        "title": "Dilutive shares",
        "description": "Extra common shares if options, warrants and convertibles were turned into stock (weighted for the period). Optional.",
        "type": "number",
        "minimum": 0,
        "maximum": 10000000000000
      },
      "adj": {
        "title": "Earnings added back on conversion",
        "description": "After-tax interest on convertible bonds and dividends on convertible preferred stock that would stop on conversion. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "basic": {
      "label": "Basic EPS",
      "description": "(Net income − preferred dividends) ÷ weighted average common shares.",
      "format": "money"
    },
    "diluted": {
      "label": "Diluted EPS",
      "description": "(Earnings to common + earnings added back) ÷ (weighted shares + dilutive shares), but never more than basic EPS.",
      "format": "money"
    },
    "earnings": {
      "label": "Earnings to common stockholders",
      "description": "Net income minus preferred dividends.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "ni": 35000,
      "pref": 5000,
      "sh": 8000,
      "dil": 0,
      "adj": 0
    },
    "outputs": {
      "basic": 3.75,
      "diluted": 3.75,
      "earnings": 30000
    },
    "text": "Net income of $35,000.00, less any preferred dividends, over 8,000 weighted shares gives basic EPS of $3.75 and diluted EPS of $3.75."
  },
  "examples": [
    {
      "given": {
        "ni": 35000,
        "pref": 5000,
        "sh": 8000
      },
      "expect": {
        "basic": 3.75,
        "diluted": 3.75,
        "earnings": 30000
      },
      "source": "OpenStax, Principles of Finance, 6.5 Market Value Ratios (EPS = (net income − preferred dividends) ÷ weighted average common shares outstanding; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/6-5-market-value-ratios: (35,000 − 5,000) ÷ 8,000 = $3.75"
    },
    {
      "given": {
        "ni": 50000,
        "pref": 10000,
        "sh": 5000
      },
      "expect": {
        "basic": 8
      },
      "source": "OpenStax, Principles of Accounting, Volume 1, 14.5 Discuss the Applicability of Earnings per Share as a Method to Measure Performance (Sanaron Company). https://openstax.org/books/principles-financial-accounting/pages/14-5-discuss-the-applicability-of-earnings-per-share-as-a-method-to-measure-performance: (50,000 − 10,000) ÷ 5,000 = $8.00"
    },
    {
      "given": {
        "ni": 5000000,
        "pref": 500000,
        "sh": 1000000,
        "dil": 200000
      },
      "expect": {
        "basic": 4.5,
        "diluted": 3.75
      },
      "source": "IFRS Foundation, IAS 33 Earnings per Share (diluted EPS adjusts the earnings and the shares for dilutive potential ordinary shares such as convertibles, options and warrants). https://www.ifrs.org/issued-standards/list-of-standards/ias-33-earnings-per-share/; hand calculation in content.mdx: 4,500,000 ÷ 1,000,000 = 4.50; 4,500,000 ÷ 1,200,000 = 3.75"
    },
    {
      "given": {
        "ni": 350000,
        "pref": 30000,
        "sh": 334865,
        "dil": 693
      },
      "expect": {
        "basic": 0.9556089767518253,
        "diluted": 0.9536354370928424,
        "earnings": 320000
      },
      "source": "Van Roestel, Intermediate Financial Accounting 2 (eCampusOntario, CC BY-NC-SA 4.0), 19.2 Basic and Diluted Earnings per Share: A Review (if-converted and treasury stock methods; Ogdell Co.). https://ecampusontario.pressbooks.pub/intermediatefinancialaccounting2/chapter/19-2-basic-and-diluted-earnings-per-share-a-review/: 320,000 ÷ 334,865 = $0.9556; 320,000 ÷ 335,558 = $0.9536; exact 64000/66973 and 320000/335558 (Python Fraction)"
    },
    {
      "given": {
        "ni": 350000,
        "pref": 30000,
        "sh": 334865,
        "dil": 19593,
        "adj": 14819
      },
      "expect": {
        "basic": 0.9556089767518253,
        "diluted": 0.9445942819741691
      },
      "source": "Van Roestel, Intermediate Financial Accounting 2 (eCampusOntario, CC BY-NC-SA 4.0), 19.2 Basic and Diluted Earnings per Share: A Review (if-converted and treasury stock methods; Ogdell Co.). https://ecampusontario.pressbooks.pub/intermediatefinancialaccounting2/chapter/19-2-basic-and-diluted-earnings-per-share-a-review/: 693 + 12,000 + 6,900 = 19,593 shares; 9,344 + 5,475 = 14,819 of after-tax interest; 334,819 ÷ 354,458 = $0.9446 (Python Fraction 334819/354458)"
    },
    {
      "given": {
        "ni": 1000000,
        "sh": 500000,
        "dil": 100000,
        "adj": 40000
      },
      "expect": {
        "basic": 2,
        "diluted": 1.7333333333333334
      },
      "source": "IFRS Foundation, IAS 33 Earnings per Share (diluted EPS adjusts the earnings and the shares for dilutive potential ordinary shares such as convertibles, options and warrants). https://www.ifrs.org/issued-standards/list-of-standards/ias-33-earnings-per-share/; hand calculation in content.mdx: 1,000,000 ÷ 500,000 = 2.00; 1,040,000 ÷ 600,000 = 26/15 = 1.7333…"
    },
    {
      "given": {
        "ni": -100000,
        "sh": 50000,
        "dil": 10000
      },
      "expect": {
        "basic": -2,
        "diluted": -2
      },
      "source": "IFRS Foundation, IAS 33 Earnings per Share (diluted EPS adjusts the earnings and the shares for dilutive potential ordinary shares such as convertibles, options and warrants). https://www.ifrs.org/issued-standards/list-of-standards/ias-33-earnings-per-share/; hand calculation in content.mdx: −100,000 ÷ 50,000 = −2.00; −100,000 ÷ 60,000 = −1.67 is above −2.00, so diluted EPS = basic EPS"
    }
  ],
  "sources": [
    "OpenStax, Principles of Finance, 6.5 Market Value Ratios: EPS = (net income − preferred dividends) ÷ weighted average common shares outstanding; the weighted average shares example (1,350); Clear Lake Sporting Goods ($3.75); public companies report basic and diluted EPS. https://openstax.org/books/principles-finance/pages/6-5-market-value-ratios (retrieved 2026-10-18)",
    "OpenStax, Principles of Accounting, Volume 1, 14.5 Discuss the Applicability of Earnings per Share as a Method to Measure Performance: the same formula and the Sanaron Company example ($8.00). https://openstax.org/books/principles-financial-accounting/pages/14-5-discuss-the-applicability-of-earnings-per-share-as-a-method-to-measure-performance (retrieved 2026-10-18)",
    "IFRS Foundation, IAS 33 Earnings per Share: dilution is a potential reduction in EPS or increase in loss per share; diluted EPS adjusts earnings and the share count for convertible instruments, options and warrants. https://www.ifrs.org/issued-standards/list-of-standards/ias-33-earnings-per-share/ (retrieved 2026-10-18)",
    "Financial Accounting Standards Board, Summary of Statement No. 128, Earnings per Share: basic EPS = income available to common stockholders ÷ weighted-average common shares; diluted EPS reflects securities that could be exercised or converted into common stock. https://www.fasb.org/page/PageContent?pageId=/reference-library/superseded-standards/summary-of-statement-no-128.html (retrieved 2026-10-18)",
    "Michael Van Roestel, Intermediate Financial Accounting 2 (eCampusOntario, CC BY-NC-SA 4.0), 19.2 Basic and Diluted Earnings per Share: A Review: preferred dividends for cumulative and non-cumulative shares, the treasury stock and if-converted methods, ranking from most to least dilutive, and the Ogdell Co. example ($0.9556 basic; $0.9536 and $0.9446 diluted). https://ecampusontario.pressbooks.pub/intermediatefinancialaccounting2/chapter/19-2-basic-and-diluted-earnings-per-share-a-review/ (retrieved 2026-10-18)"
  ],
  "related": [
    "pe-ratio",
    "market-cap",
    "roe",
    "dividend-yield"
  ],
  "changelog": []
}