# Earnings Per Share Calculator

This is an online Earnings per Share calculator.

## What are Earnings per Share?

Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company. In other words, it is the portion of a company’s profit that is allocated to each outstanding share of its common stock.

## How to calculate EPS?

EPS is calculated by taking the difference between a company’s net income and dividends paid for preferred stock and then dividing that figure by the average number of shares outstanding.

`EPS = Total Earnings / Outstanding Shares`

## EPS Example

• EPS = (net income – dividends on preferred stock) / average outstanding common shares
• EPS = (\$350,000,000 – \$220,000,000) / 200,100,000 = \$0.65

## Basic vs diluted earnings per share

There are often two EPS numbers reported, basic earnings per share and diluted earnings per share. There are some important differences between the two:

• Basic: Includes all of the company’s outstanding shares.
• Diluted: Includes all outstanding shares, as well as stock options, warrants and restricted stock units that could become outstanding shares in the future.

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