How to use this calculator
- Enter annual cash flow, positive annual discount rate (%).
- 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
The first payment is one year from now. The discount rate must be positive and consistent with the cash-flow basis.
Worked example
With annual cash flow = 1000, positive annual discount rate (%) = 5, perpetuity present value is approximately 20000.
What the result means
An infinite constant payment stream is a model, not a promise that any asset pays forever.
Common questions
How should I interpret perpetuity present value?
An infinite constant payment stream is a model, not a promise that any asset pays forever.
What should I check before using this result?
The first payment is one year from now. The discount rate must be positive and consistent with the cash-flow basis.
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.