<PAGE>
                                                                  EXHIBIT 11.1

                                          GREAT PLAINS SOFTWARE, INC
                               COMPUTATION OF UNAUDITED NET INCOME PER SHARE

<TABLE>
<CAPTION>
                                               Primary EPS                    Fully Diluted EPS
                                        Three Months Ended November 30  Three Months Ended November 30
                                              1997            1996           1997            1996
<S>                                         <C>            <C>            <C>            <C>
Weighted average common shares              
  oustanding                                13,475,717      7,356,506      13,475,717     7,356,506

Common Stock equivalents                    
  Assumed conversion of mandatorily         
     redeemable preferred stock (1)                         1,847,627                     1,847,627
  Stock Options (2)                            694,120        641,745         695,606       641,745
                                            
Weighted average common and common          
  equivalent shares outstanding             14,169,837                     14,171,323
                                            
Pro forma weighted average common and       
  common equivalent shares outstanding (1)                  9,845,878                     9,845,878
                                            
Net income                                   2,139,000        650,000       2,139,000       650,000
                                            
Unaudited net income per share                    0.15                           0.15
                                            
Unaudited pro forma net income per share(1)                      0.07                          0.07
</TABLE>

<TABLE>
<CAPTION>
                                               Primary EPS                    Fully Diluted EPS
                                         Six Months Ended November 30  Six Months Ended November 30
                                              1997           1996            1997           1996
<S>                                          <C>            <C>            <C>            <C>
Weighted average common shares               
  oustanding                                13,093,015      7,357,047      13,093,015     7,357,047
                                             
Common Stock equivalents                     
  Assumed conversion of mandatorily          
     redeemable preferred stock (1)                         1,847,627                     1,847,627
  Stock Options (2)                            727,969        641,745         728,712       641,745
                                             
Weighted average common and common           
  equivalent shares outstanding             13,820,984                     13,821,727
                                             
Pro forma weighted average common and        
  common equivalent shares outstanding (1)                  9,846,419                     9,846,419
                                             
Net income                                   3,672,000      1,201,000       3,672,000     1,201,000
                                             
Unaudited net income per share                    0.27                           0.27
                                             
Unaudited pro forma net income per share(1)                      0.12                          0.12

</TABLE>

(1)  Unaudited pro forma net income per share for the three and six months ended
     November 30, 1996, is based upon the pro forma weighted average number of
     common stock and common stock equivalent shares outstanding for the period.
     It assumes the conversion of the Company's Series A Convertible Preferred
     Stock and the Series B Mandatorily Redeemable Convertible Preferred Stock
     into 1,847,627 shares of common stock effective June 1, 1996.

(2)  Effect of applying the treasury stock method to weighted average stock
     options outstanding during the period.


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