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
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.