Earnings per Share Calculator
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Measure earnings per share from net income, preferred dividends, weighted average common shares, and current share price.
Earnings per Share Calculator
Free online earnings per share calculator to measure profit available to each common share. This calculator is useful for investors, equity analysts, finance students, business owners, and anyone reviewing company profitability on a per-share basis. Earnings per share, usually called EPS, is one of the most widely used stock performance measures because it connects total company profit with the number of common shares that actually participate in that profit. EPS helps compare businesses of different sizes, supports valuation work, and makes it easier to understand how net income translates into value for common shareholders.
This calculator uses four main inputs. Net income means total profit after expenses and taxes. Preferred dividends means the portion of profit that must be paid to preferred shareholders before anything is attributed to common shareholders. Weighted average common shares means the average number of common shares outstanding during the period. Current share price means the market price used to compare the stock with its earnings power. Once these values are entered, the calculator shows earnings available to common, earnings per share, earnings yield, and price-to-earnings ratio. These outputs help you see the raw per-share profit, the earnings return relative to price, and the valuation multiple implied by the share price.
The formula of earnings per share
Earnings available to common = Net income – Preferred dividends
Earnings per share = Earnings available to common / Weighted average common shares
Earnings yield = Earnings per share / Current share price x 100
Price-to-earnings ratio = Current share price / Earnings per share
Here net income means total profit after tax, preferred dividends means dividends reserved for preferred shareholders, earnings available to common means profit attributable to common shareholders, weighted average common shares means the average number of common shares during the period, earnings per share means profit earned per common share, earnings yield means the earnings return implied by the current share price, and price-to-earnings ratio means how many dollars investors pay for each dollar of earnings.
Solved Example
Example 1: Find earnings per share if net income is $500,000, preferred dividends are $50,000, weighted average common shares are 150,000, and current share price is $24.
Solve: Earnings available to common = 500000 – 50000 = $450,000
Earnings per share = 450000 / 150000 = $3.00
Earnings yield = 3.00 / 24.00 x 100 = 12.50%
Price-to-earnings ratio = 24.00 / 3.00 = 8.0000
Example 2: Find the result if net income is $960,000, preferred dividends are $60,000, weighted average common shares are 300,000, and current share price is $45.
Solve: Earnings available to common = $900,000
Earnings per share = 900000 / 300000 = $3.00
Earnings yield = 3.00 / 45.00 x 100 = 6.6667%
Price-to-earnings ratio = 45.00 / 3.00 = 15.0000
Example 3: Find the result if net income is $420,000, preferred dividends are $20,000, weighted average common shares are 100,000, and current share price is $20.
Solve: Earnings available to common = $400,000
Earnings per share = 400000 / 100000 = $4.00
Earnings yield = 4.00 / 20.00 x 100 = 20.00%
Price-to-earnings ratio = 20.00 / 4.00 = 5.0000
Table of earnings per share calculator
| Earnings to Common | Shares | EPS | P/E Ratio |
|---|---|---|---|
| $240,000 | 80,000 | $3.00 | 10.0000 |
| $400,000 | 100,000 | $4.00 | 5.0000 |
| $450,000 | 150,000 | $3.00 | 8.0000 |
| $900,000 | 300,000 | $3.00 | 15.0000 |
How to use this earnings per share calculator
Enter net income in the proper input field. After that, enter preferred dividends, weighted average common shares, and current share price using values from the same reporting period. Then click the calculate button. The calculator will show earnings available to common, earnings per share, earnings yield, and price-to-earnings ratio in the result box.
This calculator is especially useful when comparing companies or tracking one business over time. EPS can rise because profit improves, because the company buys back shares, or because preferred dividend obligations fall. Looking at earnings yield and the price-to-earnings ratio alongside EPS adds more context. A company may have a solid EPS number but still trade at a very high multiple, or it may have a moderate EPS with a much more conservative valuation.
When using the result, remember that EPS can be influenced by one-time gains, accounting changes, share issuances, and share repurchases. Diluted EPS may also differ from basic EPS when stock options, convertible securities, or other share-linked instruments are significant. Even so, this calculator gives a clear and practical first-pass way to convert company profit into a per-share measure and connect that measure to market price and stock valuation.