Growing Perpetuity Calculator

Calculate the present value of an infinite stream of payments that grow at a constant rate (Gordon Growth Model).

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Important Financial Disclaimer

This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.

For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.

Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.

Not a substitute for professional financial advice

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
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sources

  • Reserve Bank of India (RBI) — Financial regulations, lending rates, and monetary policy guidelines. rbi.org.in
  • Consumer Financial Protection Bureau (CFPB) — Consumer finance guidelines, mortgage and loan disclosure standards. consumerfinance.gov
  • Securities and Exchange Board of India (SEBI) — Investment and securities market regulations. sebi.gov.in
  • Investopedia — Financial formulas, definitions, and educational content. investopedia.com

For a complete list of all references used across the site, visit our full sources page.

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Editorial Note

MyCalcBuddy Editorial Team

This page is maintained as an educational calculator reference.

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Formula Source: Fundamentals of Financial Management

by Brigham & Houston

🔄Last reviewed: May 2026
✓Formula checks are based on standard references and internal QA review.