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Finance Calculators

Growing Perpetuity Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

Present value

₹10,00,000

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Growing Perpetuity Calculator

The Growing Perpetuity Calculator works out your present value in an instant. Enter first-year payment, discount rate and growth rate and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the first-year payment.
  2. Enter the discount rate.
  3. Enter the growth rate.
  4. Read off your present value — the calculator updates automatically, with no button to press.

Formula

The Growing Perpetuity Calculator uses the formula:

Present value = First-year payment ÷ ((Discount rate - Growth Discount rate) ÷ 100)

Worked example

For example, with first-year payment of ₹50,000, discount rate of 8% and growth rate of 3%, the present value is ₹10,00,000.

Inputs used
First-year payment ₹50,000
Discount rate 8%
Growth rate 3%
Results
Present value ₹10,00,000

Results are estimates for educational use, not professional advice.

Key terms explained

Present value
Today's worth of money you will receive in the future, discounted for the time value of money.

Frequently asked questions

It is an endless stream of payments that grows at a steady rate. Its value is the first payment divided by (discount rate − growth rate).

PV = payment ÷ (rate − growth). A 50,000 payment with an 8% rate and 3% growth is worth 10,00,000 today.

The formula breaks down and gives no sensible value, since payments grow faster than they are discounted. Growth must be below the rate.

It underpins stock valuation models like the Gordon growth model, where dividends are assumed to grow forever at a fixed rate.

Enter the first-year payment. Enter the discount rate. Enter the growth rate. Read off your present value — the calculator updates automatically, with no button to press.

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