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Level perpetuity present value

Level perpetuity present value: Present value of end-of-period level payments continuing forever = payment / discount rate.

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How it works

Present value of end-of-period level payments continuing forever = payment / discount rate.

Input definitions

Payment each period
Enter the value in the labeled unit.
Discount rate per period (%)
Enter the value in the labeled unit.

A worked example

Payment each period
1000
Discount rate per period (%)
5
20000.00

Assumptions & limits

Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.

Sources & review

Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.

Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.

Common questions

Does the first payment occur immediately?

No. The first payment occurs one period from now. An immediate payment must be added separately.

How does Level perpetuity present value work?

Present value of end-of-period level payments continuing forever = payment / discount rate.

What should I check before using Level perpetuity present value?

Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.

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