<PAGE>

                                                                  EXHIBIT 11.1
 
                               ANCHOR PACIFIC
                        COMPUTATION OF LOSS PER SHARE

<TABLE> 
<CAPTION> 


                                                                      Years Ended December 31
                                                       ----------------------------------------------------
                                                          1998                1997                  1996
                                                       ----------          ----------           -----------
<S>                                                    <C>                <C>                   <C>  
BASIC

  Net loss from continuing operations                  $ (768,648)         $ (965,441)          $(1,405,800)
  Net income (loss) from discontinued operations           (6,682)             18,750               (26,392)
                                                       ----------          ----------           ----------- 
  Net loss                                             $ (775,330)         $ (946,691)          $(1,432,192)
                                                       ==========          ==========           ===========
                                                                                                            
  Weighted average shares outstanding                   4,710,057           4,612,153              3,766,176 
                                                       ==========          ==========           ===========
                                                                                                            
  Per share amount:                                                                                         
        Continuing operations                          $    (0.16)         $    (0.21)          $     (0.37) 
        Discontinued operations                        $    (0.00)         $    (0.00)          $     (0.00) 
                                                       ----------          ----------           -----------  
                                                       $    (0.16)         $    (0.21)          $     (0.37) 
                                                       ==========          ==========           ===========  
DILUTED                                                                                                     
  Net loss from continuing operations,                                                                      
   after deducting interest on debentures              $ (761,748)         $ (959,441)          $(1,284,130)
  Net income (loss) from discontinued operations           (6,682)             18,750               (26,392)
                                                       ----------          ----------           ----------- 
  Net loss                                             $ (768,430)         $ (940,691)          $(1,310,522)
                                                       ==========          ==========           =========== 
                                                                                                            
  Weighted average shares outstanding                   4,710,057           4,612,153             3,766,176 
  Net effect of dilutive stock options                                                                      
   and warrants - based on the treasury                                                                     
   stock method using the average market price                 --                  --                57,371 
  Net effect of convertible debentures                                                                      
   outstanding end of period                              504,444              44,444                60,606 
  Effect of shares issued upon conversion of                                                                
   debentures, assuming the conversion occurred                                                             
   at the beginning of the period                              --                  --               580,555
                                                       ----------          ----------           -----------  
                                                                                                            
  Total                                                 5,214,501           4,656,597             4,464,708
                                                       ==========          ==========           ===========  
                                                                                                            
  Per share amount (A):                                                                                     
        Continuing operations                          $    (0.15)         $    (0.21)          $     (0.29) 
        Discontinued operations                        $    (0.00)         $    (0.00)          $     (0.01) 
                                                       ----------          ----------           -----------  
                                                       $    (0.15)         $    (0.21)          $     (0.30) 
                                                       ==========          ==========           ===========   
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Note (A): For financial reporting purposes, basic and diluted loss per share is
     calculated exclusive of the effects of stock options, warrants, and
     convertible debentures because they are antidilutive. The above calculation
     on the dilutive basis includes the effect of stock options, warrants and
     convertible debentures outstanding, for the purposes of complying with
     section 229.601 of regulation S-K.