# Perpetuity Calculator - Present Value of Perpetual Equal Periodic Payments

Use this calculator to determine the present value of a perpetual annuity, which is a series of equal periodic payments paid indefinitely at the end of successive periods.

Perpetuity Calculator - Present Value of Perpetual Equal Periodic Payments
Periodic Payment (\$):
Discount Rate (%):
Payment Period
Present Value
Do not enter \$ or % in any field.

## Computational Notes:

The present value is computed using the following formula:

PV = P / ((1 + r)^n - 1)

Where:

PV = Present Value

P = Periodic Payment

r = Discount Rate / 100

n = Payment Period

Adjust the discount rate to reflect the interval between payments which typically are annual, semiannual, quarterly or monthly. For example, for a 6% annual discount rate, enter 6 for an annual interval. Enter 3 for a semiannual interval. Enter 1.5 for a quarterly interval. Enter .5 for a monthly interval.

The discount rate is the same for all payment periods.

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Perpetuity Calculator - Present Value of Perpetual Equal Payments