Growing Perpetuity

Calculate Growing Perpetuity instantly with the exact formula and a worked example.

Growing Perpetuity

First payment (in one year)$
Discount rate%
Payment growth rate%
PV of growing perpetuity
1,428,571$
Calculate Growing Perpetuity instantly with the exact formula and a worked example.
Multiplier 1/(r − g)
14.29

More about: Growing Perpetuity

What it calculates

The “Growing Perpetuity” calculator computes PV of growing perpetuity in $ from 3 parameters: first payment (in one year) ($), discount rate (%), payment growth rate (%).

A core calculation for studying, engineering tasks, and checking solutions.

Example calculation

With parameters First payment (in one year) = 100,000 $, Discount rate = 10 %, Payment growth rate = 3 % the result is 1,428,571 $.

How to use

  1. Enter first payment (in one year), discount rate and payment growth rate — each field above is adjustable with a slider.
  2. PV of growing perpetuity ($) is calculated automatically as you type.
  3. Check the worked example below to see the formula applied to real numbers.
  4. Copy the result or bookmark this calculator.

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FAQ

How is Growing Perpetuity calculated?
The Growing Perpetuity calculator computes PV of growing perpetuity (in $) from first payment (in one year), discount rate, payment growth rate. Enter your values above and the exact formula is applied instantly; a worked example with real numbers is shown below.
Is the Growing Perpetuity calculator free?
Yes. It is completely free, needs no signup, runs entirely in your browser, and sends no data to any server.

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