Report a Problem
Suggestions

# Growing Perpetuity Calculator

Last updated: Saturday, June 24, 2023
Select a type of perpetuity below
Constant Perpetuity
Growing Perpetuity

A perpetuity provides you with a steady stream of cash payments of equal amount that you will receive indefinitely. Unlike an ordinary annuity, a perpetuity never ends (in theory).

Examples of growing perpetuities are stocks that pay dividends, or properties that are bought to provide a stream of income in the form of rent.

Our calculator helps you determine how much money you need to invest right now if you want to receive regular payments forever which grows at a fixed rate annually.

The formula for determining the present value of a growing perpetuity is defined as:
$$PV$$ $$=$$ $$payment_{{first}}$$ $$\times$$ $$\dfrac{n}{rate - growth}$$
$$PV$$: The lump sum you need to invest right now
$$payment_{{first}}$$: The amount of the first payment you expect to receive or the minimum payment.
$$n$$: the number of payments you want to receive each year. (max. 12 times a year, which means you are going to receive a payment every month)
$$rate$$: the annual interest rate of the perpetuity or the discount rate
$$growth$$: the rate at which your cashflow will grow

## Present Value

Use this calculator to find out how much money you need to invest right now if you want to receive a steady and growing cashflow for the rest of your life.
The amount of the first payment you expect to receive or the minimum payment.
$$payment_{{first}}$$

the number of payments you want to receive each year. (max. 12 times a year, which means you are going to receive a payment every month)
$$n$$
the annual interest rate of the perpetuity or the discount rate
$$rate$$
$$\%$$
the rate at which your cashflow will grow
$$growth$$
$$\%$$
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
Bookmark this page or risk going on a digital treasure hunt again

2 (2)
2 (2)