Work out growing annuity value instantly with clear inputs, formula shown and shareable results.
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.
Growing annuity PV
PV = P₁/(r - g) × [1 - ((1+g)/(1+r))^n]
The formula collapses to PV = n × P₁/(1+r), because each discounted payment has the same present value.
Yes for a finite term — the value stays finite. Only a perpetual stream needs r to be greater than g.