Perpetuity (Infinite Annuity) Calculator
Result
Perpetuity (Infinite Annuity) Calculator Perpetuity Calculator finds the present value of an infinite stream of equal cash flows. Formula: PV = PMT / r. Used for dividend discount model and valuing preferred stocks. — free online calculator.
Formula
- Perpetuity (Infinite Annuity) Calculator calculates its result from Annual Payment / Dividend, Discount Rate (Annual %). It uses the formula PV = PMT / r. Change any input to recalculate the result instantly.
- The main inputs are Annual Payment / Dividend, Discount Rate. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Perpetuity (Infinite Annuity)
- Annual Payment / Dividend: 1000
- Discount Rate: 5 Annual %
Using Annual Payment / Dividend = 1000, Discount Rate (Annual %) = 5, the calculated result is 20000.
Sample result: Calculating…
Frequently asked questions
What does the Perpetuity (Infinite Annuity) calculate?
Perpetuity (Infinite Annuity) Calculator Perpetuity Calculator finds the present value of an infinite stream of equal cash flows. Formula: PV = PMT / r. Used for dividend discount model and valuing preferred stocks. — free online calculator.
Which values should I enter?
Enter Annual Payment / Dividend, Discount Rate using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: PV = PMT / r.
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.