# What is my EPS?

Computes basic and diluted earnings per share (EPS) from net income, preferred dividends, weighted average shares and dilutive securities.

- Page: https://www.acalculator.org/finance/eps-calculator
- JSON spec: https://www.acalculator.org/finance/eps-calculator.json
- Version: 1c45c8dcbb5d

## Default answer

Example with the default inputs (Net income $35,000.00, Preferred dividends $5,000.00, Weighted average common shares 8,000, Dilutive shares 0, Earnings added back on conversion $0.00): 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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| ni | Net income | Profit for the period after every expense, interest and tax. Negative for a loss. |
| pref | Preferred dividends | 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. |
| sh | Weighted average common shares | Common shares outstanding, each weighted by the part of the period it was outstanding. |
| dil | Dilutive shares | Extra common shares if options, warrants and convertibles were turned into stock (weighted for the period). Optional. |
| adj | Earnings added back on conversion | After-tax interest on convertible bonds and dividends on convertible preferred stock that would stop on conversion. Optional. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| basic | Basic EPS | (Net income − preferred dividends) ÷ weighted average common shares. |
| diluted | Diluted EPS | (Earnings to common + earnings added back) ÷ (weighted shares + dilutive shares), but never more than basic EPS. |
| earnings | Earnings to common stockholders | Net income minus preferred dividends. |

## 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.

## Worked examples

1. ni = $35,000.00, pref = $5,000.00, sh = 8,000 gives basic = $3.75, diluted = $3.75, earnings = $30,000.00. 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.
2. ni = $50,000.00, pref = $10,000.00, sh = 5,000 gives basic = $8.00. 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.
3. ni = $5,000,000.00, pref = $500,000.00, sh = 1,000,000, dil = 200,000 gives basic = $4.50, 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/.
4. ni = $350,000.00, pref = $30,000.00, sh = 334,865, dil = 693 gives basic = $0.96, diluted = $0.95, earnings = $320,000.00. 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.
5. ni = $350,000.00, pref = $30,000.00, sh = 334,865, dil = 19,593, adj = $14,819.00 gives basic = $0.96, diluted = $0.94. 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.
6. ni = $1,000,000.00, sh = 500,000, dil = 100,000, adj = $40,000.00 gives basic = $2.00, diluted = $1.73. 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/.
7. ni = -$100,000.00, sh = 50,000, dil = 10,000 gives basic = -$2.00, diluted = -$2.00. 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/.

## FAQ

### What is EPS?

Earnings per share (EPS) is the profit that belongs to each common share. It is the amount each share would get if the company paid out all of the period's earnings to common stockholders.

### How do I calculate EPS?

Subtract preferred dividends from net income, then divide by the weighted average number of common shares. Clear Lake Sporting Goods earned $35,000, paid $5,000 of preferred dividends and had 8,000 shares, so its EPS was 30,000 ÷ 8,000 = $3.75.

### What is the weighted average number of shares?

Each block of shares counts for the part of the year it was outstanding. A company with 600 shares for 3 months, then 1,600 shares for 9 months, has 600 × 3/12 + 1,600 × 9/12 = 1,350 weighted average shares.

### What is diluted EPS?

Diluted EPS shows what EPS would be if stock options, warrants and convertible securities were turned into common shares. More shares share the same earnings, so diluted EPS is lower. With $4,500,000 of earnings, 1,000,000 shares and options for 200,000 more, basic EPS is $4.50 and diluted EPS is $3.75.

### What goes in "earnings added back on conversion"?

If convertible bonds became stock, the company would stop paying their interest, so its earnings would rise by the interest after tax. Ogdell Co.'s $400,000 of 3.2% bonds at a 27% tax rate add back 400,000 × 0.032 × (1 − 0.27) = $9,344. Convertible preferred stock works the same way with its dividends, which have no tax effect. Leave the box empty for options and warrants.

### Why is diluted EPS never higher than basic EPS?

A security that would raise EPS, or shrink a loss per share, is called antidilutive, and the accounting rules leave it out. Test each kind of security on its own and add them from the most dilutive; enter only the ones that keep lowering EPS. If the diluted figure still comes out higher than basic EPS, this calculator shows basic EPS for both.

## 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)