Earnings per share: Calculating Earnings Available per Common Share
Basic EPS allocates earnings after preferred dividends across weighted average common shares. The weighting matters when shares are issued or repurchased during the period.
Use the Earnings per share Calculator to enter your own figures and compare the result with the worked example below.
Earnings per share formula
EPS = (Net income − Preferred dividends) ÷ Weighted average common shares
Worked example
| Item | Example value |
|---|---|
| Net income | 100000 USD |
| Preferred dividends | 10000 USD |
| Weighted average common shares | 30000 shares |
| Earnings per share | 3 USD |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Basic and diluted EPS are different measures. Use consistent period earnings and share counts rather than the closing share count automatically.
Related calculations
Method and further reading
The example follows the FinMathly calculator method. For broader background, see Investor.gov: Introduction to investing. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.