What this calculator does
Buyback impact on EPS works out how a share repurchase changes earnings per share, all else equal. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaEPS before = Net income / Shares before; Shares after = Shares before − Shares repurchased; EPS after = Net income / Shares after
The inputs explained
| Field | What to enter |
|---|---|
| Net income ($) | A number, measured in your currency. Starts at 50000000. |
| Shares outstanding before | A number. Starts at 20000000. |
| Shares repurchased | A number. Starts at 2000000. |
| Price paid per share ($) | A number, measured in your currency. Starts at 25. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with net income
Every other input is held at the calculator’s starting values while net income varies. Select any row to load that scenario into the calculator.
How the answer changes with net income
| Net income ($) | EPS after buyback | EPS before buyback | EPS change |
|---|---|---|---|
| 25,000,000 | $1.39 | $1.25 | 11.1% |
| 37,500,000 | $2.08 | $1.88 | 11.1% |
| 50,000,000 | $2.78 | $2.50 | 11.1% |
| 75,000,000 | $4.17 | $3.75 | 11.1% |
| 100,000,000 | $5.56 | $5.00 | 11.1% |
| 150,000,000 | $8.33 | $7.50 | 11.1% |