Perpetuity Calculator
Calculate perpetuity from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate perpetuity from your own entered figures. Both forms assume the first cash flow arrives in one year and continues forever at a constant discount rate.
How to use the Perpetuity Calculator
- Enter or select annual cash flow.
- Enter or select discount rate (%).
- Enter or select perpetual growth rate (%).
- Read the calculated result; change any measurement to compare alternatives.
Formula
level perpetuity PV = C/r; growing perpetuity PV = C/(r − g), valid only when r > g
- cash
- Annual cash flow
- rate
- Discount rate (%)
- growth
- Perpetual growth rate (%)
Both forms assume the first cash flow arrives in one year and continues forever at a constant discount rate.
Worked example
For perpetuity calculator, the following measurements illustrate the exact method: Annual cash flow: 5000; Discount rate (%): 5; Perpetual growth rate (%): 2.
Inputs
- Annual cash flow5000
- Discount rate (%)5
- Perpetual growth rate (%)2
Result
- Present value (level perpetuity)$100,000.00
- Present value (growing perpetuity)$166,666.67
Results explained
- Present value (level perpetuity)
- Present value (level perpetuity) from the formula above. Both forms assume the first cash flow arrives in one year and continues forever at a constant discount rate.
- Present value (growing perpetuity)
- Present value (growing perpetuity) from the formula above. Both forms assume the first cash flow arrives in one year and continues forever at a constant discount rate.
Frequently asked questions
level perpetuity PV = C/r; growing perpetuity PV = C/(r − g), valid only when r > g
Both forms assume the first cash flow arrives in one year and continues forever at a constant discount rate.
No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.
This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.
Check period consistency, currency, percentage inputs and the assumptions: Both forms assume the first cash flow arrives in one year and continues forever at a constant discount rate.