Diluted Earnings Per Share Calculator (w/ Formula)

Enter the net income, average shares, and other convertible instruments into the calculator. The calculator will display the diluted earnings per share.

Diluted Earnings Per Share Formula

The following equation is used to calculate the diluted EPS of a security.

DEPS = NI / AS + OI

  • Where DEPS is the diluted earnings per share
  • NI is the net income
  • AS is the average shares
  • OI is other convertible instruments

Diluted Earnings Per Share Definition

The diluted earnings per share, also known as diluted EPS, is a financial term used to analyze earnings per share when taking into account other convertible instruments that could effect the overall EPS. This allows investors to make more accurate predictions of the future EPS of a company.

Diluted Earnings Per Share Example

How to calculate dilute earnings per share?

  1. First, determine the net income.

    Measure or calculate the net income.

  2. Next, determine the average number of shares.

    This is the average number of shares available.

  3. Next, determine the other convertible instruments.

    Calculate the value of any and all other convertible instruments.

  4. Finally, calculate the diluted earnings per share.

    Calculate the DEPS using the formula above.

FAQ

What is diluted earnings per share?

A diluted earnings per share is modified version of EPS that takes into account other convertible instruments.

diluted earnings per share calculator
diluted earnings per share formula