Perpetuity Value Calculator
Enter the annual payment, discount rate and a comparison period.
Perpetuity value
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Enter values above
Value over the comparison period
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Value beyond the period
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Multiple of the annual payment
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Share received in the first period
Value at a 3% discount rate
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Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Annual payment ($) | 10000 |
| Discount rate (%) | 5 |
| Comparison period (years) | 20 |
| Result | Value |
|---|---|
| Perpetuity value | $200,000 |
| Value over the comparison period | $124,622 |
| Value beyond the period | $75,378 |
| Multiple of the annual payment | 20x |
| Share received in the first period | 62.31% |
| Value at a 3% discount rate | $333,333 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Perpetuity Value Calculator
- Annual payment ($) — default 10000
- Discount rate (%) — default 5
- Comparison period (years) — default 20
- Press Calculate to update the results instantly.
Frequently asked questions
Because distant cash flows are heavily discounted. At 5%, a payment in 50 years is worth about 9% of today’s value, so the tail adds far less than intuition suggests.
The return available on a comparable, equally risky investment. For inflation-linked income streams, use a real discount rate and keep the payment in today’s money.
UK consols historically, some preferred shares, ground rents, and terminal values in valuations. The maths is the same in all of them.