Perpetuity Calculator
Calculate the present value of a perpetuity - an infinite stream of periodic payments.
Perpetuity Details
$10,000
$1,000$500,000
5%
1%20%
2%
0%10%
PV of Simple Perpetuity
$200,000
For $10,000 payment at 5% discount
PV Growing Perpetuity
$333,333
2% growth
Payment per Period
$10,000
Effective Yield
5.00%
Multiple of Payment
20.0x
Sensitivity to Discount Rate
RateSimple PVGrowing PV
3%$333,333$1,000,000
4%$250,000$500,000
5%$200,000$333,333
6%$166,667$250,000
7%$142,857$200,000
8%$125,000$166,667
9%$111,111$142,857
10%$100,000$125,000
11%$90,909$111,111
12%$83,333$100,000
Perpetuity Formulas
Simple Perpetuity
PV = PMT / r
Used for preferred stock, consol bonds, and other fixed-payment securities
Growing Perpetuity
PV = PMT / (r - g)
Used for stocks with constant dividend growth (Gordon Growth Model basis)