<PAGE>
 
                                                                     EXHIBIT 11

                       GRANITE BROADCASTING CORPORATION
                 STATEMENT OF COMPUTATION OF PER SHARE EARNINGS

<TABLE> 
<CAPTION> 
                                            Three Months Ended September 30,         Nine months ended September 30,   
                                            --------------------------------         -------------------------------   
                                               1997                 1996                  1997               1996     
                                               ----                 ----                  ----               ----
                                                       (Unaudited)                              (Unaudited)      
<S>                                         <C>                 <C>                  <C>                <C> 
Primary:                                                                                                                         

Weighted average common shares                                                                                                   
    outstanding                                8,767,216           8,677,841            8,755,984          8,589,403  
                                            ============        ============         ============       ============  
                                                                                                                      
Loss before extraordinary item              $ (2,180,804)       $ (3,506,052)        $ (4,942,022)      $ (5,150,249) 
Extraordinary loss                            (5,248,315)                ---           (5,569,119)        (2,891,250) 
                                            -------------       ------------         -------------      ------------- 
                                                                                                                      
Net loss                                    $ (7,429,119)       $ (3,506,052)        $(10,511,141)      $ (8,041,499) 
                                            =============       =============        =============      ============= 
                                                                                                                      
Net loss attributable to                                                                                              
    common shareholders                     $(13,317,709)       $ (4,387,372)       $ (26,480,832)      $(10,685,456) 
                                            =============       =============       ==============      ============= 
                                                                                                                      
Per common share:                                                                                                     
      Loss before extraordinary item        $      (0.92)       $     (0.51)        $      (2.39)       $     (0.91)  
      Extraordinary loss                           (0.60)                ---               (0.64)             (0.34)  
                                            -------------       ------------        -------------       ------------  
      Net loss                              $      (1.52)       $     (0.51)        $      (3.03)       $     (1.25)  
                                            =============       ============        =============       ============  
                                                                                                                      
                                                                                                                      
Fully Diluted:                                                                                                        
                                                                                                                      
Weighted average common shares                                                                                        
    outstanding                                8,767,216           8,677,841            8,755,984          8,589,403  
                                            ============        ============         ============       ============  
                                                                                                                      
Loss before extraordinary item              $ (2,180,804)       $ (3,506,052)        $ (4,942,022)      $ (5,150,249) 
Extraordinary loss                            (5,248,315)                ---           (5,569,119)        (2,891,250) 
                                            -------------       ------------         -------------      ------------- 
                                                                                                                      
Net loss                                    $ (7,429,119)       $ (3,506,052)        $(10,511,141)      $ (8,041,499) 
                                            =============       =============        =============      ============= 
                                                                                                                      
Net loss attributable to                                                                                              
    common shareholders                     $(13,317,709)       $ (4,387,372)       $ (26,480,832)      $(10,685,456) 
                                            =============       =============       ==============      ============= 
                                                                                                                      
Per common share:                                                                                                     
      Loss before extraordinary item        $      (0.92)       $     (0.51)        $      (2.39)       $     (0.91)  
      Extraordinary loss                           (0.60)                ---               (0.64)             (0.34)  
                                            -------------       ------------        -------------       ------------  
      Net loss                              $      (1.52)       $     (0.51)        $      (3.03)       $     (1.25)  
                                            =============       ============        =============       ============   
</TABLE>