EXHIBIT (11)

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Computation of Earnings Per Share

Amounts in millions except per share amounts

	Years Ended June 30
	2007		2006		2005		2004		2003
BASIC NET EARNINGS PER SHARE
Net earnings	$	10,340	$	8,684	$	6,923	$	6,156	$	4,788
Preferred dividends, net of tax benefit		161		148		136		131		125
Net earnings available to common shareholders	$	10,179	$	8,536	$	6,787	$	6,025	$	4,663
Basic weighted average common shares outstanding		3,159.0		3,054.9		2,515.6		2,580.1		2,593.2
Basic net earnings per common share	$	3.22	$	2.79	$	2.70	$	2.34	$	1.80
DILUTED NET EARNINGS PER SHARE
Net earnings	$	10,340	$	8,684	$	6,923	$	6,156	$	4,788
Deduct preferred dividend impact on funding of ESOP		0		0		1		4		9
Diluted net earnings	$	10,340	$	8,684	$	6,922	$	6,152	$	4,779
Basic weighted average common shares outstanding		3,159.0		3,054.9		2,515.6		2,580.1		2,593.2
Add potential effect of:
Conversion of preferred shares		149.6		154.1		158.3		164.0		170.2
Exercise of stock options and other unvested equity awards		90.0		76.9		63.2		55.3		40.3
Diluted weighted average common shares outstanding		3,398.6		3,285.9		2,737.1		2,799.4		2,803.7
Diluted net earnings per common share	$	3.04	$	2.64	$	2.53	$	2.20	$	1.70

(1)	Despite being included currently in diluted net earnings per common share, the actual conversion to common stock occurs pursuant to the repayment of the ESOP debt through 2021.
(2)	Approximately 41 million in 2007, 44 million in 2006 and 48 million in 2005 of the Company’s outstanding stock options were not included in the diluted net earnings per share calculation because to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares).