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Finance Calculators
Perpetuity Calculator
Calculate the present value of a perpetuity, a stream of equal payments that continues forever.
Present value
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About the Perpetuity Calculator
A perpetuity is a stream of equal payments that continues forever. Despite lasting infinitely, it has a finite present value because payments far in the future are discounted to almost nothing.
Formula: PV = Annual Payment ÷ Discount Rate
Perpetuities are used to value certain preferred stocks, some UK government bonds ("consols"), and as a simplified model for terminal value in company valuations.
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