Advanced Perpetuity Value Calculator

Calculator Inputs

The form uses three columns on large screens, two on tablets, and one on mobile devices.

First Period Payment

Discount Rate (%)

Growth Rate (%)

Perpetuity Type

Payment Timing

Periods for Table and Chart

Currency Symbol

Decimal Places

Example Data Table

Scenario	Payment	Discount Rate	Growth Rate	Type	Approximate Value
Income Fund	$1,000	8%	0%	Level	$12,500.00
Growing Payout	$1,200	9%	3%	Growing	$20,000.00
Scholarship Fund	$800	7%	2%	Growing	$16,000.00
Lease Stream	$500	6%	0%	Level	$8,333.33

Formula Used

Level perpetuity: Present Value = C / r

Growing perpetuity: Present Value = C₁ / (r - g)

Perpetuity due adjustment: Multiply the ordinary value by (1 + r)

Here, C is the recurring payment, C₁ is the next payment, r is the discount rate, and g is the perpetual growth rate. For a valid growing perpetuity, the discount rate must stay higher than the growth rate.

How to Use This Calculator

Enter the first payment amount expected from the perpetuity.
Provide the discount rate as a percentage.
Choose level or growing perpetuity mode.
Enter a growth rate when using the growing mode.
Select whether payments occur at period end or period start.
Set the number of periods to display in the chart and table.
Choose your preferred currency symbol and decimal precision.
Press Calculate Value to view the result above the form.
Use the CSV or PDF buttons to export the calculated schedule.

Frequently Asked Questions

1. What does a perpetuity value calculator measure?

It estimates the present value of payments that continue forever. The result shows what that infinite stream is worth today using your discount assumptions.

2. When should I use the level perpetuity option?

Use it when every payment remains unchanged over time. Preferred stock examples and fixed annual support funds often fit this structure well.

3. When is the growing perpetuity formula appropriate?

Use it when each future payment grows by a constant rate forever. This is common in long-term valuation models and dividend-based analysis.

4. Why must the discount rate exceed the growth rate?

If growth equals or exceeds discounting, the mathematical value does not converge. A higher discount rate ensures the perpetuity has a finite present value.

5. What is the difference between ordinary and due timing?

Ordinary timing assumes payments arrive at each period end. Due timing assumes payments arrive at each period start, increasing present value slightly.

6. Why does the table show only limited periods?

The perpetuity is infinite, so the table shows an illustrative horizon only. It helps visualize how discounted payments build toward the total value.

7. Can I export my calculation results?

Yes. The page includes CSV and PDF export buttons for the displayed cash flow schedule, making it easier to share or archive results.

8. Is this calculator useful for finance and maths study?

Yes. It supports valuation practice, discounting concepts, infinite series intuition, and quick scenario testing for assignments, business models, and revision.