Select a type of perpetuity below
A perpetuity provides you with a steady stream of cash payments of equal amount that you will receive indefinitely. Unlike an ordinary annuity, a perpetuity never ends (in theory).
Examples of constant perpetuities are government or company issued bonds.
Perpetuity might seem too good to be true, however it's important to know that the value of money will decrease over time due to inflation. Meaning, $100 today will be a lot more valuable than $100 in 20 years.
Our calculator helps you determine how much money you need to invest right now if you want to receive a fixed amount of cash each year for the rest of your life.
The formula for determining the present value of a constant perpetuity is defined as:
\(PV\): The lump sum you need to invest right now
\(Cashflow\): The amount of money you want to receive
\(n\): the number of payments you want to receive each year. (max. 12 times a year, which means you are going to receive a payment every month)
\(rate\): the annual interest rate of the perpetuity or the discount rate
Present Value
Use this calculator to find out how much money you need to invest right now if you want to receive a steady cashflow for the rest of your life.
The amount of money you want to receive
the number of payments you want to receive each year. (max. 12 times a year, which means you are going to receive a payment every month)
the annual interest rate of the perpetuity or the discount rate
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
