Perpetuity Calculator

Value an infinite stream of equal payments.

Present value ($) 20,000

Formula: PV = payment ÷ rate

Step-by-step with your numbers:

1. Values used:

2. Annual payment = 1,000 $

3. Discount rate = 5 %

5. Present value = 20,000$

Did we solve your problem today?

A perpetuity pays the same amount forever; its value is finite.

The math behind it

PV = annual payment ÷ discount rate.

$1,000/yr at 5% → $20,000.

Real example?

Some preferred shares and consols behave like perpetuities.