EPS Calculator
Calculate basic and diluted earnings per share, measure dilution impact from stock options and convertible securities, or track EPS growth over time. Works with any currency.
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How to Use This Calculator
Tab "Basic EPS"
Enter net income from the company's income statement, preferred dividends paid (enter 0 if the company has no preferred stock), and the weighted average shares outstanding for the reporting period. The calculator returns basic earnings per share, which shows how much profit is attributable to each common share.
Tab "Diluted EPS"
Enter the same income figures plus the number of additional shares that would be created if all dilutive securities were exercised: stock options, convertible bonds, and warrants. The result shows diluted EPS alongside basic EPS and the dilution impact percentage — how much per-share earnings drop when all potential shares are included.
Tab "EPS Growth"
Choose between year-over-year (two periods) or multi-year CAGR (five periods). For YoY, enter current and previous EPS to see the growth rate. For multi-year, enter five consecutive years of EPS to calculate the compound annual growth rate with a year-by-year breakdown table.
The Formulas
Basic EPS = (Net Income − Preferred Dividends) / Weighted Avg Shares Outstanding
Diluted EPS:
Diluted EPS = (Net Income − Preferred Dividends) / (Shares + Dilutive Securities)
Dilution impact:
Dilution Impact = (Basic EPS − Diluted EPS) / |Basic EPS| × 100
EPS growth (year-over-year):
Growth Rate = (Current EPS − Previous EPS) / |Previous EPS| × 100
EPS CAGR (multi-year):
CAGR = (Latest EPS / Earliest EPS)^(1/years) − 1
All calculations are universal. No country-specific accounting standards are applied. Results are based on the inputs you provide — verify figures against audited financial statements.
Worked Examples
Example 1 — Basic EPS: $5M net income, 1M shares
A company reports $5,000,000 in net income and pays $200,000 in preferred dividends. It has 1,000,000 weighted average common shares outstanding.
Each common share earned $4.80 during the period. Compare this to the previous period or industry average to gauge performance.
Example 2 — Diluted EPS: 100,000 dilutive shares
Using the same company, assume 50,000 stock options, 30,000 convertible bond shares, and 20,000 warrant shares could be issued.
Dilutive securities reduce EPS by 9.09%. This is a meaningful dilution — investors should factor this into valuation analysis.
Example 3 — 5-year EPS CAGR
A company's EPS over five years: $2.10, $2.80, $3.40, $4.10, $5.20.
The company grew EPS at an annualised rate of 25.42% over four years. This strong compounding reflects consistent profitability improvement.
Understanding Earnings Per Share
What Is EPS?
Earnings per share (EPS) divides a company's profit among its outstanding common shares. It is the single most-cited profitability metric in equity analysis. When a company reports quarterly or annual results, EPS is front and centre because it directly connects corporate performance to shareholder value.
Basic vs Diluted EPS
Basic EPS uses only currently outstanding shares. Diluted EPS adds in all shares that could exist if stock options, convertible bonds, and warrants were exercised. US GAAP and IFRS both require companies to report both figures. Diluted EPS is always the more conservative number — use it when comparing companies or calculating price-to-earnings ratios.
Why Dilution Matters
If a company has a large pool of unexercised options or convertible securities, future dilution could significantly reduce per-share earnings. A dilution impact above 5–10% warrants closer examination. Look at the company's equity compensation plan and convertible debt schedule to understand the timeline and likelihood of dilution.
EPS Growth and CAGR
A single year of EPS tells you current profitability. The trend over 3–5 years tells you whether the company is improving. Year-over-year growth shows the latest momentum. CAGR (compound annual growth rate) smooths out volatility and shows the average annual rate. Companies with sustained double-digit EPS CAGR are typically high-quality compounders.
EPS Limitations
EPS can be influenced by share buybacks (which reduce the denominator), one-time charges, and accounting choices. Always look at EPS alongside revenue growth, free cash flow, and return on equity for a complete picture. Adjusted or non-GAAP EPS figures that exclude certain items are common but should be compared with GAAP EPS.