Growing Perpetuity
Value perpetual payments growing below the discount rate.
Your numbers
Present value
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Scenario comparison
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Formula
PV=A₁/(r−g)
Value perpetual payments growing below the discount rate.
Worked example
- Next payment
- 100
- Discount rate (%)
- 8
- Payment growth (%)
- 3
- Present value
- 2,000
Scope and limitations
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.
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Formula version: 9d21780c95f0 · Example checked: