Growing Perpetuity Calculator

The calculator shows an error instead of a number — mathematically, a growing perpetuity's present value is only finite when the discount rate is strictly greater than the growth rate. If growth ≥ discount rate, the formula would imply an infinite value, which isn't meaningful.

Plain Perpetuity Calculator assumes a constant, unchanging payment forever. This tool assumes the payment grows by a fixed percentage every period (e.g. a stock's dividend growing with the business) — this is sometimes called the Gordon Growth Model in equity valuation.

Your assumed long-term growth rate for the payment — often approximated using long-run GDP growth or inflation for conservative, stable-business valuations.

It's a simplified academic version of the Gordon Growth Model used in equity valuation — real valuations typically layer in more assumptions (multi-stage growth, terminal value adjustments) beyond this single-stage formula.