Perpetuity Calculator
Calculate the present value of a perpetuity - an infinite stream of periodic payments.
Important Financial Disclaimer
This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.
For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.
Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.
Not a substitute for professional financial advice
Perpetuity Details
PV of Simple Perpetuity
$200,000
For $10,000 payment at 5% discount
2% growth
Sensitivity to Discount Rate
Perpetuity Formulas
Simple Perpetuity
PV = PMT / r
Used for preferred stock, consol bonds, and other fixed-payment securities
Growing Perpetuity
PV = PMT / (r - g)
Used for stocks with constant dividend growth (Gordon Growth Model basis)
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