learn.howToCalculate

learn.whatIsHeading

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.

Водич корак по корак

1. 1Enter your data
2. 2System calculates

Worked Examples

Common Mistakes to Avoid

• ✕Inaccurate inputs
• ✕Outdated assumptions

Frequently Asked Questions