Perpetuity Value Calculator
Enter values locally; fields start blank.
Enter values locally; fields start blank.
Result
This idealized model assumes an infinite stream of cash flows. It is arithmetic only and provides no prediction or financial advice.
Source: OpenStax, Principles of Finance 2e, 8.1 Perpetuities — https://openstax.org/books/principles-finance-2e/pages/8-1-perpetuities
A QUICK WALKTHROUGH
How to use this tool
- Enter the cash flow and positive discount rate.
- Choose fixed or growing perpetuity; enter growth for growing cash flows.
- Calculate and review the value.
Perpetuity type
Fixed: V = C ÷ r. Growing: V = C₁ ÷ (r − g), requiring r > g.
Formula
This idealized model assumes an infinite stream of cash flows. It is arithmetic only and provides no prediction or financial advice.
GOOD TO KNOW
Common questions
When can I use the growing formula?
Use it only when the discount rate is greater than the growth rate; this tool does not assess whether those assumptions are realistic.