Perpetuity Calculator
Present value of a perpetuity: PV = Annual payment / Discount rate.
Use the Perpetuity Calculator
Enter annual payment and discount rate (%). Present value of the perpetuity is calculated.
Inputs
Annual payment and discount rate (%).
Results
Present value (perpetuity)
$20,000
PV = Annual payment / Discount rate. Perpetuity pays forever.
How this calculator works
PV = Annual payment / Discount rate. Rate must be greater than zero.
How to interpret your results
PV is the value today of receiving the payment every year forever.
FAQs
What is a perpetuity?▾
A stream of equal cash flows forever. PV = Payment / Discount rate.
Which inputs do I need?▾
Annual payment and discount rate (as %).
When would I use this?▾
Valuing preferred stock, consols, or any never-ending payment stream.
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