How to use this calculator
- Enter next annual cash flow, annual discount rate (%), annual perpetual growth (%).
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
This financial-mathematics task applies to general cash flows; dividend-specific valuation also needs equity assumptions.
Worked example
With next annual cash flow = 1000, annual discount rate (%) = 8, annual perpetual growth (%) = 3, growing perpetuity present value is approximately 20000.
What the result means
The model is undefined when growth is at least the discount rate and is very sensitive when the two are close.
Common questions
How should I interpret growing perpetuity present value?
The model is undefined when growth is at least the discount rate and is very sensitive when the two are close.
What should I check before using this result?
This financial-mathematics task applies to general cash flows; dividend-specific valuation also needs equity assumptions.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.