Online Tool Store
Perpetuity Calculator
Explore a growing perpetuity example with payment, discount rate, and growth assumptions. Read the value formula; custom calculations are not available.
🔒 This tool runs entirely in your browser. Your files are never uploaded to a server.
Finance
Perpetuity Calculator
Frontend preview — no upload or external service.
Present value
150,000 a year growing at 2%, discounted at 9%: present value 2,142,857. Raise growth to 4% and it becomes 3,000,000 — a 40% jump from two percentage points.
How the Perpetuity Calculator works
- Review the displayed example: an annual payment of 150,000, a 9% discount rate, and 2% growth.
- Compare the example value of 2,142,857 with 3,000,000 at 4% growth.
- Use the formula below for a manual calculation. The input fields and Calculate value button do not calculate a new value.
For manual calculation, use PV = payment / (r - g), with rates expressed as decimals and r greater than g. Set g to zero for a level perpetuity. The widget shows only a fixed example.
FAQ
Does this perpetuity calculator calculate my inputs?
No. The widget shows a fixed worked example. Editing payment or rate fields does not calculate a new present value.
What does the displayed perpetuity example show?
It shows 150,000 divided by (0.09 minus 0.02), approximately 2,142,857. With growth of 4%, the same example gives 3,000,000.
Does Calculate value update the example?
No. The button replaces the example with a preview status message. It does not run the perpetuity formula.
Available features
| Feature | Online Tool Store |
|---|---|
| Worked growing-perpetuity example | ✓ |
| Example comparing two growth assumptions | ✓ |