Smart Living Finds — Master Tools Index

Growing Perpetuity Present Value Calculator

Next Expected Cash Flow ($C_1$)

$

The cash flow expected one period from now (e.g., next year's dividend).

Required Rate of Return (r)

%

The annual rate used to discount future cash flows.

Constant Growth Rate (g)

%

The annual rate at which the cash flow is expected to grow indefinitely. Must be **less than** the Discount Rate ($g < r$).

Present Value (PV) of Growing Perpetuity

**Formula:** $$PV = \frac{C_1}{r - g}$$ Where $C_1$ = Next Cash Flow, $r$ = Discount Rate, $g$ = Growth Rate