Growing Annuity Value Calculator

Work out growing annuity value instantly with clear inputs, formula shown and shareable results.

About Growing Annuity Value Calculator

A growing annuity pays a fixed number of instalments that each rise by a constant percentage. Its value is the ordinary annuity formula adjusted for the growth rate, which is how escalating leases, indexed pensions and rising dividend streams are valued.

Formula

Growing annuity PV

PV = P₁/(r - g) × [1 - ((1+g)/(1+r))^n]

P1: First payment
r: Discount rate
g: Growth rate
n: Payments

Worked example

With the default values below, Growing Annuity Value Calculator returns Present Value Of Growing Annuity of $146,168.63. Change any input above and every figure here is recalculated in your browser.

Inputs used

First Paymentminimum 0: 12,000
Discount Rateaccepts 0–100 %: 9 %
Payment Growth Rateaccepts 0–100 %: 4 %
Number Of Paymentsaccepts 1–200: 20

Results

Present Value Of Growing Annuity: $146,168.63
Final Payment: $25,282.19
Total Nominal Payments: $357,336.94
First-Year Yield On Value: 8.210%

Step by step

1Values used
2Growing annuity PV
3Present Value Of Growing Annuity= 146,168.63
4Final Payment= 25,282.19
5Total Nominal Payments= 357,336.94
6First-Year Yield On Value= 8.210

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What if growth equals the discount rate?

The formula collapses to PV = n × P₁/(1+r), because each discounted payment has the same present value.

Can growth exceed the discount rate?

Yes for a finite term — the value stays finite. Only a perpetual stream needs r to be greater than g.