Earnings per share calculator
This earnings per share calculator gives EPS in one step. Example: 2,500,000 of net income, 100,000 of preferred dividends and 800,000 shares make 3.00 per share; at a price of 45 the P/E is 15.00.
Example: Net income 2,500,000 · Preferred dividends 100,000 · Weighted average shares 800,000 · Share price (optional) 45 → Earnings per share: Earnings per share (EPS) = 3.00 · P/E = 15.00. Source: IFRS Foundation – IAS 33 Earnings per Share. Updated: .
How it is calculated
Earnings per share (EPS) shows how much of a year’s net income belongs to a single share. It underlies many valuation ratios, such as the price-to-earnings ratio.
Formula
EPS = (net income − preferred dividends) ÷ weighted average shares outstanding. Preferred dividends are deducted because they are paid ahead of common shareholders. The share count is weighted because issues or buybacks during the year change the number of shares only for part of the period (IAS 33). The P/E ratio is price ÷ EPS.
Example
Net income 2,500,000, preferred dividends 100,000: 2,400,000 is left for common shares. With 800,000 weighted shares, EPS = 2,400,000 ÷ 800,000 = 3.00. At a share price of 45, the P/E is 45 ÷ 3 = 15.00.
- The calculator returns basic EPS; options and convertible bonds can lower diluted EPS.
- Earnings per share and dividends per share are different figures.
Frequently asked questions
How do you calculate earnings per share?
Net income minus preferred dividends, divided by the weighted number of shares. In the example 2,400,000 ÷ 800,000 = 3.00.
Why is the share count weighted?
Because new shares or buybacks only share in earnings for the part of the year they are outstanding. An average over the year reflects that.
What does the P/E ratio tell you?
It relates the price to earnings per share: 45 ÷ 3.00 = 15.00. It shows how many years of current earnings the price represents; whether that is high or low depends on industry and growth.
Sources and legal basis
- IFRS Foundation – IAS 33 Earnings per Share
- Wikipedia – Earnings per share
- Wikipedia – Gewinn je Aktie
As of: · Editorial policy
Related tools
- Stock Profit CalculatorStock profit calculator: enter buy and sell price, shares and fees to see profit or loss, return, break-even price and annualized return at once.
- Dividend Yield CalculatorDividend yield calculator: enter price and dividend to see the yield, income per year and month, yield after tax and yield on cost with dividend growth.
- Dividend payout ratio calculatorDividend payout ratio calculator: divide dividends by earnings, in total or per share, and get the retention ratio alongside, with the formula.
- Return on equity calculatorReturn on equity calculator: work out ROE from net income and shareholders’ equity, optionally using average equity, with the formula.
- CAGR Calculator – Average Annual ReturnCAGR calculator: average annual return from a beginning and ending value, or from yearly returns – geometric, not arithmetic, with a year-by-year table.
- Average CalculatorAverage calculator: mean, median, mode and weighted average of your numbers with working and frequency table – plus the value needed for a target average.
- Margin calculatorMargin calculator: enter cost or price plus margin, markup or profit and get the rest – with totals by quantity and a margin table for volume price tiers.
- Selling Fee Calculator for Etsy, eBay, Amazon and ShopifyCalculate Etsy, eBay, Amazon and Shopify seller fees: commission, payment processing, payout, profit and margin per sale – with sources, as of 09/2026.
- Marginal cost calculatorMarginal cost calculator: divide the change in total cost by the change in quantity and compare average cost at both quantities.