Work out perpetuity value instantly with clear inputs, formula shown and shareable results.
A perpetuity pays a fixed amount for ever, and its value is simply the payment divided by the discount rate. The factor 1/r is also the ceiling on any long annuity factor at that rate.
Perpetuity
PV = P / r
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Consols and some preference shares come close, and ground rents behave similarly.
Because distant payments discount to almost nothing — at 8% the difference between 50 years and for ever is small.