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Perpetuity Calculator

Calculate the present value of a perpetuity — a fixed payment that continues forever — from the payment amount and discount rate.

How to Use Perpetuity Calculator
  1. 1Enter the fixed payment amount per period
  2. 2Enter your discount rate
  3. 3Click Calculate to see the present value
Frequently Asked Questions

A theoretical cash flow that never stops and never changes in amount. Real-world approximations include preferred stock dividends (often fixed and expected to continue indefinitely) and, loosely, some ground lease payments.

This tool assumes the payment amount stays exactly the same forever. Growing Perpetuity Calculator assumes the payment increases by a constant growth rate each period (e.g. a dividend that grows with inflation).

It's the limit of the standard present-value-of-an-annuity formula as the number of periods approaches infinity — the math simplifies to this single division.

Only if the bond/loan has no maturity date (a true perpetual bond, which is rare). Standard bonds and loans with a fixed maturity should use bond/loan-specific formulas instead, since they have a finite number of payments plus a principal repayment.

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