Earnings Per Share (EPS) Calculator

Net Income:
Preferred Dividends:
Common Shares Outstanding:

What is an Earnings Per Share (EPS) Calculator?

An Earnings Per Share (EPS) Calculator helps determine the amount of a company’s profit allocated to each outstanding share of common stock. It’s a key metric for evaluating a company’s profitability on a per-share basis.

When to use an Earnings Per Share (EPS) Calculator?

Use this calculator when:

You need to evaluate the profitability of a business as an investor or financial analyst.
Comparing multiple companies to assess which offers better returns on investment.
Presenting financial data for stakeholders or reporting purposes.

How to use an Earnings Per Share (EPS) Calculator?

1. Input the Net Income: The company's total profit.

2. Enter the Preferred Dividends: The dividends paid to preferred shareholders.

3. Add the Common Shares Outstanding: The total number of shares held by common shareholders.

4. Click Calculate EPS to compute the result.

The formula used is:

EPS = (Net Income - Preferred Dividends) ÷ Common Shares Outstanding

Who needs an Earnings Per Share (EPS) Calculator?

This tool is essential for:

Investors: To evaluate a company’s earnings relative to each share of stock they own.
Financial Analysts: For assessing company performance and making strategic recommendations.
Corporate Executives: When reporting to shareholders or making financial forecasts.