📈 Growing Annuity Calculator
Calculate the present value of a series of payments that grow at a constant rate each period.
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What is a growing annuity?
A growing annuity is a series of periodic payments that increase by a constant growth rate each period, such as a pension with cost-of-living adjustments or a business’s projected cash flows with steady growth.
The formula
Present Value = [First Payment / (Discount Rate − Growth Rate)] × [1 − ((1 + Growth Rate) / (1 + Discount Rate))^Number of Periods]. When the growth rate equals the discount rate, this formula simplifies to the first payment times the number of periods, discounted one period.
This calculator is for general financial education and analysis practice, not investment advice. Results are highly sensitive to the assumed growth and discount rates.
Last reviewed August 2026