Growing Perpetuity Calculator
Calculate the present value of an infinite stream of payments that grow at a constant rate (Gordon Growth Model).
Growing Perpetuity Details
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Gordon Growth Formula: PV = D1 / (r - g)
Commonly used to value stocks with stable dividend growth.
Present Value
$16,666.67
Fair value of growing perpetuity
Year 5 Payment
$1,104.08
Year 10 Payment
$1,218.99
Valuation Details
First Payment$1,000.00
Growth Rate2.00%
Discount Rate8.00%
Effective Yield (r - g)6.00%
Years to Double Payment35.0 years
Present Value$16,666.67