# EPS Growth Calculator

URL: https://speedycalculator.com/calculators/finance/eps-growth/
Last updated: 2026-10-25

> The EPS growth calculator works out the total and compound annual growth of earnings per share between two periods – the growth rate used in PEG ratios and growth stock analysis.

## Inputs

- Initial EPS
- Final EPS
- Number of periods (years)

## Results

- Total growth in EPS
- EPS growth rate (per year)
- Change in EPS

## Formula

```
Total growth = (final EPS − initial EPS) ÷ |initial EPS|
Annual EPS growth rate = (final EPS ÷ initial EPS)^(1 ÷ years) − 1
```

## Explanation

Steady EPS growth is one of the clearest signs of a healthy, growing company. Investors compare it with the P/E ratio (the PEG ratio) to see whether a stock's price is justified by its growth.

### How to use the EPS Growth Calculator

- **Initial EPS**
- **Final EPS**
- **Number of periods (years)**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the initial EPS, the final EPS and the number of years between them.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterInitial EPSAmount in your currencyFinal EPSAmount in your currencyNumber of periods (years)A number

### What each result means

- **Total growth in EPS** = ([Final EPS] - [Initial EPS])÷abs([Initial EPS])×100
- **Change in EPS** = [Final EPS] - [Initial EPS]

### Example values

How the main result changes when **Initial EPS** changes and everything else stays at the example values above:

Initial EPSEPS growth rate (per year) (%)1.0534.141.5821.212.112.82.636.683.151.934.2-5.15

## Worked example

Inputs — Initial EPS: $2.1; Final EPS: $3.4; Number of periods (years): 4.

Results — Total growth in EPS = 61.9 %; **EPS growth rate (per year) = 12.8 %**; Change in EPS = $1.30.

## FAQ

**How is EPS growth calculated?**
(Final EPS ÷ initial EPS)^(1/years) − 1 for the annual rate.

**What if EPS was negative?**
Compound growth isn't meaningful; use the change in dollars instead.

**What is a good EPS growth rate?**
10–15% a year is strong for an established company.

**What formula does the EPS Growth Calculator use?**
Total growth = (final EPS − initial EPS) ÷ |initial EPS|.