How to Calculate Perpetual Annuity

What is Perpetual Annuity?

A perpetual annuity (perpetuity) calculator determines the value of an infinite stream of equal payments. Value = Payment ÷ Interest Rate. At a 5% rate, a $1,000/year perpetuity is worth $20,000 today. Perpetuities are used to value dividends, UK government consol bonds, and real estate income.

Step-by-Step Guide

1Enter your data
2System calculates

Worked Examples

Input

Enter the required values

Result

Result computed by the formula

Common Mistakes to Avoid

✕Inaccurate inputs
✕Outdated assumptions

Frequently Asked Questions

What does this calculator do?

Enter your data

How do I use this calculator?

System calculates

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