Present Value of Perpetuity Calculator

The present value of a perpetuity is used to determine the present value of the streams of equal payments that do not end. The value of perpetuity can change over time even though the payment remains the same. Use the online present value of perpetuity calculator to determine the present value of the perpetual annuity. The PV of perpetuity calculation is done by entering the current pending payments value and interest rate in the below calculator.

PV of Perpetuity Calculation

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The present value of a perpetuity is used to determine the present value of the streams of equal payments that do not end. The value of perpetuity can change over time even though the payment remains the same. Use the online present value of perpetuity calculator to determine the present value of the perpetual annuity. The PV of perpetuity calculation is done by entering the current pending payments value and interest rate in the below calculator.

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Formula:

Present Value of Perpetuity = Periodic Payments / (Interest Rate / 100)

Example:

Calculate the present value of a perpetuity paying $1,000 at the end of each month. The monthly discount rate is 0.8%.

Solution:

PV of Perpetuity = 1000 / (0.8 / 100)
= $125,000


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