Perpetuity Calculator
Enter a periodic payment amount and a discount rate to find the present value of a perpetual (never-ending) stream of payments.
What is a perpetuity?
A perpetuity is a series of equal periodic payments that continues forever, with no end date. Common examples used in finance theory include certain preferred stocks and some government bonds (consols) that pay a fixed coupon indefinitely.
How this calculator works
The present value of a level perpetuity is found using PV = C ÷ r, where C is the periodic payment and r is the discount rate (as a decimal). If payments are expected to grow at a constant rate g each period, the calculator also shows the growing perpetuity value using PV = C ÷ (r – g), which only produces a valid result when the discount rate is greater than the growth rate.
Because true perpetuities are rare in practice, this formula is more often used as an approximation or valuation building block — for example, to estimate the terminal value of a business in a discounted cash flow model.
This calculator is for general educational and planning purposes only.