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Perpetuity value calculator

Compute the present value of a perpetuity — a stream of payments that never ends.

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The Perpetuity value calculator turns Payment per period, Discount rate (%) into Present value, instantly and for free. For instance, with Payment per period = $1,000.00 and Discount rate (%) = 5 it returns Present value = $20,000.00.

How to use it

  1. Enter your values: Payment per period, Discount rate (%).
  2. Read the result instantly: Present value.

Frequently asked questions

How does the Perpetuity value calculator work?

It takes Payment per period and Discount rate (%) and derives Present value from them. The calculation is live as you type, so the result updates on every change.

Which values does the calculator ask for?

2 values: Payment per period ($) and Discount rate (%). Nothing else is required — no account, no file upload.

What does a typical calculation look like?

With Payment per period = $1,000.00 and Discount rate (%) = 5, the calculator returns Present value = $20,000.00. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

How much does the result change with different inputs?

It moves a lot. Using Payment per period = $2,000.00 and Discount rate (%) = 5.5 instead, Present value goes from $20,000.00 to $36,363.64 — which is why it is worth testing a few scenarios rather than trusting a single figure.

What does it give for smaller values?

Scaled down to Payment per period = $500.00 and Discount rate (%) = 4.5, Present value comes out at $11,111.11. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Comparing two investments that pay at different times, deciding whether a project clears its cost of capital, and sanity-checking a valuation someone else produced.

What is the most common mistake?

Trusting a valuation without asking what share of it comes from the terminal value. Past 70%, the answer is an assumption about the distant future dressed up as a calculation.

How accurate is it, and what are the limits?

Estimate only — not financial advice.

What is the difference between the Perpetuity value calculator and the Present value of annuity calculator?

Both return Present value. What differs is what they ask for: this one wants Discount rate (%), the Present value of annuity calculator wants Rate per period (%) and Number of periods. Use whichever matches the numbers you already have.

Is there a tool for the next step?

Present value calculator is the closest one after this: Find today's value of a future sum of money at a given discount rate.

Further reading

All guides →
ExplainerPresent Value vs Future Value: Why Money in Thirty Years Is Worth About an Eighth of Its FacePV = FV ÷ (1+r)^n. At 7 percent over 30 years the discount factor is 0.131, so a promise of $100,000 in thirty years is worth $13,137 today — and $41,199 if you assume 3 percent instead.ComparisonNPV vs IRR: What to Do When the Two Rules Rank the Same Projects DifferentlyIRR picks the $10,000 project returning 50 percent; NPV picks the $100,000 project returning 30 percent, worth $20,370 against $3,889. And a mine with a cleanup cost has two IRRs, 10 and 20 percent, so the rate answers nothing.GuideBuying Back Retirement Quarters or Points: From What Age It Stops PayingThe usual advice is that a buy-back gets worse with age, because the price rises. The French scale is written to be actuarially neutral, so that is not quite what is happening — and once you see what actually moves the answer, the decision changes. Computed on the current parameters.ExplainerWhat Is a Funding Rate? The Recurring Cost of Holding a PerpetualFunding is paid every eight hours on the full notional, between traders rather than to the exchange. A rate of 0.01 percent looks like nothing and costs 10.95 percent a year. Here is the formula and an annualised table.GuideYield Farming: What an Advertised APY Actually PaysThe number on the farm's front page is a gross figure before every subtraction. Here is a 120 percent APY walked down, one layer at a time, to the 33.6 percent that actually landed — plus why APR and APY are not the same number.ExplainerHow Staking Rewards Actually Work: Nominal Rate, Compounding, and What Eats ItAn advertised 8 percent becomes 8.33 percent once daily rewards compound — and then 7.46 percent after a 10 percent validator commission, and less again after unbonding time. Here is each step, with the arithmetic laid out.