Calculate Earnings Per Share Instantly
Calculate basic and diluted earnings per share in one place. Enter the numbers yourself, or auto-fill real figures from any ticker. The treasury stock method for options, warrants, and convertibles is built in.
AAPLor
Basic EPS
$6.12 per share
The company generated $6.12 in net income for each basic share outstanding.
Calculation:
($93.7B net income − $0M preferred dividends) ÷ 15.3B shares
Potential dilution:
100M additional shares could reduce EPS by approximately 0.6%.
Calculation:
($93.7B net income − $0M preferred dividends) ÷ 15.3B shares
Potential dilution:
100M additional shares could reduce EPS by approximately 0.6%.
Potential dilution
0.6%
Diluted EPS
$6.08
Foundations
What counts as a good EPS?
There's no universal threshold, a $2 EPS isn't inherently better than $0.50, because it depends on share count and price. EPS earns its meaning through comparison: track it over time for the same company to see if profitability is rising, or compare peers in the same industry. Read it alongside the P/E ratio (price ÷ EPS) and the EPS growth rate rather than in isolation. And watch for buybacks: a company can lift EPS purely by shrinking the share count, even with flat profits.
Basic vs. diluted EPS
The difference between the two is the single most common point of confusion, and the reason a dedicated calculator matters.
Basic EPS
Uses only common shares currently outstanding. Simple, but it ignores stock that could be created later.
Diluted EPS
Adds shares that could exist if options, warrants, and convertibles were exercised. Always less than basic EPS.
Why it matters
Diluted EPS is the conservative, worst-case figure. Analysts and 10-Ks lead with it because it can't flatter the number.
The treasury stock method
Diluted EPS doesn't just add every option as a new share, that would overstate dilution. The treasury stock method assumes the company uses the cash from exercised options to buy back shares at the market price. Only the net new shares dilute EPS. In the calculator, that's why the exercise price and market price both matter: options are only dilutive when they're in the money (market price above strike), and the deeper in the money they are, the more they dilute. Convertible shares are added directly to the diluted count.
The Formula
EPS Formula, three key inputs is all you need
Basic earnings per share is net income minus preferred dividends, divided by the weighted average number of common shares outstanding.
EPS =
Net income-Preferred dividends
Weighted average common shares
Net income
Weighted average common shares
Preferred dividends
Three inputs drive it. Net income is the after-tax profit from the bottom of the income statement. Preferred dividends are subtracted because EPS measures earnings available to common shareholders, and preferred holders get paid first. Weighted average shares is used instead of a simple share count because the number of shares changes through the year as companies buy back or issue stock, so each block is weighted by the fraction of the period it existed.
Worked Example
AAPL's EPS Calculation Example, line by line
Here's basic EPS using AAPL's latest figures, the kind of numbers you'd read straight off a 10-K. Type a different ticker into the calculator above to load their data live.
AAPL Inc.
AAPLNASDAQMarket Cap $3.4T$274.19-1.45%
STEP 01
Find Net Income
Net Income = $93.7B Preferred Dividends = $0M Income Available = $93.7B
→ Net Income = $93.7B
STEP 02
Determine Shares Outstanding
Weighted Average Shares Outstanding = 15.3B
→ Shares Outstanding = 15.3B
STEP 03
Apply the EPS Formula
EPS = ($93.7B − $0M) ÷ 15.3B Basic EPS = $6.12
→ Basic EPS = $6.12
STEP 04
Interpret the Result
AAPL generated $6.12 in earnings for every outstanding common share.
→ AAPL's EPS = $6.12/share
Pitfalls
Five mistakes that lead to misleading EPS calculations
If your Earnings Per Share (EPS) looks unusually high or low, one of these common mistakes is often the reason.
Mistake 01
Using the wrong net income
EPS should be calculated using net income available to common shareholders, not revenue, operating income, or EBITDA.
If preferred dividends exist, they must be deducted before calculating EPS. Always use the correct net income figure from the company's income statement.
If preferred dividends exist, they must be deducted before calculating EPS. Always use the correct net income figure from the company's income statement.
Mistake 02
Ignoring preferred dividends
Companies with preferred shares must subtract preferred dividends before calculating Basic EPS. Skipping this step overstates the earnings available to common shareholders and inflates EPS. Review the financial statements to determine whether preferred dividends apply.
Mistake 03
Using ending shares instead of weighted average shares
EPS is based on the weighted average number of shares outstanding during the reporting period—not the share count at year-end. Share buybacks, new share issuances, and stock compensation can significantly change the average share count.
Always use the weighted average shares reported in the company's financial statements.
Always use the weighted average shares reported in the company's financial statements.
Mistake 04
Comparing EPS without considering dilution
Basic EPS and Diluted EPS can differ significantly for companies with stock options, RSUs, warrants, or convertible securities. Looking only at Basic EPS may overestimate earnings per share if future dilution is substantial.
Compare both metrics for a more complete picture of shareholder value.
Compare both metrics for a more complete picture of shareholder value.
Mistake 05
Judging a company based on EPS alone
A rising EPS doesn't always mean the business is improving. Share buybacks, one-time gains, or accounting adjustments can increase EPS without improving core operations.
Use EPS alongside revenue growth, free cash flow, profit margins, and return on equity (ROE) to evaluate a company's financial health.
Use EPS alongside revenue growth, free cash flow, profit margins, and return on equity (ROE) to evaluate a company's financial health.
Frequently asked questions
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