Overview
Enter a company's net income, any preferred dividends paid, and its weighted average shares outstanding to calculate earnings per share: EPS = (Net Income − Preferred Dividends) ÷ Weighted Average Shares. Preferred dividends are subtracted first because that income belongs to preferred shareholders, not common shareholders - EPS measures what's left over per common share. Net income can be entered as a negative number for a reporting period with a net loss, which produces a negative EPS (a loss per share) rather than an error, since a loss-making quarter is a normal, valid input, not an edge case to reject. Preferred dividends default to zero if left blank, matching companies with no preferred stock outstanding. Useful for a quick per-share profitability check, comparing EPS across companies, or verifying a figure reported in an earnings release. Runs entirely client-side, and this is an informational estimate, not financial advice.
Best for: Checking a company's per-share profitability from its net income and share count
How to use this tool
- Enter net income. The company's net income for the period - enter a negative number for a net loss.
- Enter preferred dividends (optional). Any dividends paid to preferred shareholders, which come out of income before common shareholders see any of it.
- Enter weighted average shares outstanding. The average number of common shares outstanding over the period.
- Read the EPS. Income available to common shareholders, divided by shares outstanding.
Frequently asked questions
Yes - if net income is negative (a net loss) or preferred dividends exceed net income, the result is a negative EPS, meaning a loss per share. This calculator allows negative net income as a normal input rather than treating it as an error.
Preferred dividends are a claim on net income that belongs to preferred shareholders, not common shareholders. EPS is meant to show what's left over per common share, so that amount is removed from net income before dividing by the common share count.
This calculates basic EPS, using the actual weighted average shares outstanding. Diluted EPS additionally accounts for shares that could be created from options, warrants, or convertible securities, which would require those instruments as separate inputs and isn't modeled here.