Value a perpetual stream of payments, with or without growth.
Please do not make financial decisions based on these results.
What is the Perpetuity Calculator?
Value a perpetual stream of payments, with or without growth. To use the Perpetuity Calculator, enter first payment, discount rate, growth rate; it returns present value (growing), present value (no growth), and shows them instantly as you type.
Where the Perpetuity Calculator fits
Value a perpetual stream of payments, with or without growth. The main figure it returns is the Present value (growing), worked out from the values you enter.
It belongs with the other investment tools. If you are comparing options or checking a result from another angle, try the Present Value Calculator, Investment Fee Calculator or the Time Value of Money Calculator.
How to use the Perpetuity Calculator
- Enter your numbers. Start with First payment ($), Discount rate (%), Growth rate (%). Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Present value (growing), and the cards below show Present value (no growth). Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Perpetuity Calculator using the default values shown in the calculator above:
Inputs
| First payment ($) | 5,000 |
|---|---|
| Discount rate (%) | 7 |
| Growth rate (%) | 2 |
Results
| Present value (growing) | $100,000.00 |
|---|---|
| Present value (no growth) | $71,428.57 |
With these inputs the calculator returns Present value (growing): $100,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising First payment ($) from 5,000 to 6,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Present value (growing) | $100,000.00 | $120,000.00 | +20% |
| Present value (no growth) | $71,428.57 | $85,714.29 | +20% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Perpetuity Calculator reports Present value (growing) and present value (no growth). Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
Can a perpetuity have growth?
Yes, a growing perpetuity raises each payment by g, provided r is greater than g.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
Are investment returns guaranteed?
No. Real returns vary. Use these tools to compare scenarios, not to predict results.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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- CD Calculator
- Discounted Cash Flow Calculator (DCF)
- Discount Rate Calculator
- NPV Calculator – Net Present Value