Free · Equity investment calculators 📈

Basic Earnings per Common Share Calculator

Estimate basic EPS after preferred dividends.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Subtract preferred dividends from net income, then divide by weighted-average common shares for the period. Income of 100,000 less 10,000 preferred dividends across 30,000 shares gives EPS of 3.

Basic EPS = (net income − preferred dividends) ÷ weighted-average common shares

Worked example

Enter these known values and leave the other values blank.

Net income
100000 USD
Dividends
10000 USD
Common shares
30000
Earnings per share
3 USD

Assumptions and limitations

  • Use values from a consistent period, scope and currency. The stated formula defines this simplified model; the explanation describes quantities it leaves out.

Common questions

Should I enter common dividends?

Use preferred dividends in the dividend input for this basic EPS calculation. Common dividends are distributions of earnings, not a deduction in basic EPS. Diluted EPS requires additional adjustments.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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