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# Present Value of Growing Perpetuity Calculatorn

A set of payments growing at certain rates for a particular period of time is called as the growing perpetuity. It is a series of periodic payments that grow at a proportionate rate and are received for an infinite amount of time. Here is an online Present Value of Growing Perpetuity Calculator which help you to calculate PV. It is calculated by the cash flow after the first period divided by the difference between the discount rate and the growth rate.

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A set of payments growing at certain rates for a particular period of time is called as the growing perpetuity. It is a series of periodic payments that grow at a proportionate rate and are received for an infinite amount of time. Here is an online Present Value of Growing Perpetuity Calculator which help you to calculate PV. It is calculated by the cash flow after the first period divided by the difference between the discount rate and the growth rate.

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#### Formula:

PV = d / ((r / 100) - (g / 100)) Where, PV = Present Value of Growing Perpetuity d = Amount r = Discount Rate g = Growth Rate

### Example:

A cash flow of Rs. 1000 is expected to grow at 5% per year and the required return used for the discount rate is 10%.

#### Solution:

PV = d / ((r / 100) - (g / 100))
= 1000 / ((10 / 100) - (5 / 100))
= Rs. 20000