Value a growing (Gordon) or level perpetuity from next cash, discount rate, and growth.
| Present value | – |
Use this perpetuity calculator for a dividend, rent, or other cash that is assumed to last forever. Cash is the next payment (C₁), not last year’s. Preferred stock without growth is the special case growth = 0.
PV = cash ÷ (rate − growth). The discount rate must exceed growth (otherwise the formula blows up). Type 8 for 8% and 2 for 2% growth. Currency is whatever you use for cash.
Next cash: The upcoming payment, in your currency.
Discount rate (%): Required return as a percent, e.g. 8 for 8%.
Growth (%): Constant growth of that cash, e.g. 2 for 2%. Use 0 for a level perpetuity.
Present value: The Gordon (or level) perpetuity value today.
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