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Perpetuity Present Value

Value a level payment continuing indefinitely.

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Your numbers

Local calculations. Results are estimates, not professional advice.

Present value

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Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.

Formula

PV=A/r

Value a level payment continuing indefinitely.

Worked example

Payment per period
100
Discount rate per period (%)
5
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.

Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.

Formula version: 34c692fb2db5 · Example checked:

Methodology

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