Perpetuity Payment Calculator

✖The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.ⓘ Present Value [PV]			+10% -10%
✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%

✖Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely.ⓘ Perpetuity Payment [PMT_perpetuity]

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Formula

✖

Perpetuity Payment

Formula

`"PMT"_{"perpetuity"} = "PV"*"r"`

Example

`"5"="100"*"0.05"`

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Perpetuity Payment Solution

STEP 0: Pre-Calculation Summary

Formula Used

Perpetuity Payment = Present Value*Rate per Period
PMT_perpetuity = PV*r
This formula uses 3 Variables

Variables Used

Perpetuity Payment - Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely.
Present Value - The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.
Rate per Period - The Rate per Period is the interest rate charged.

STEP 1: Convert Input(s) to Base Unit

Present Value: 100 --> No Conversion Required
Rate per Period: 0.05 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PMT_perpetuity = PV*r --> 100*0.05

Evaluating ... ...

PMT_perpetuity = 5

STEP 3: Convert Result to Output's Unit

5 --> No Conversion Required

FINAL ANSWER

5 <-- Perpetuity Payment

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 10+ Time Value of Money Calculators

Annuity Due Payment using Future Value

Go Annuity Payment Due = (Future Value*Rate per Period/(((1+Rate per Period)^(Total Number of Periods))-1))/(1+Rate per Period)

Number of Periods

Go Number of Periods = ln(Future Value/Present Value)/ln(1+Rate per Period)

Hamada Equation

Go Leveraged Beta = Unleveraged Beta*(1+(1-Tax Rate)*Debt to Equity (D/E))

Doubling Time

Go Doubling Time = log10(2)/log10(1+Rate of Return/100)

Doubling Time (Continuous Compounding)

Go Doubling Time Continuous Compounding = ln(2)/(Rate of Return/100)

Perpetuity Yield

Go Perpetuity Yield = Perpetuity Payment/Present Value

Perpetuity Payment

Go Perpetuity Payment = Present Value*Rate per Period

Doubling Time (Simple Interest)

Go Doubling Time Simple Interest = 100/Annual Interest Rate

Rule of 69

Go Doubling Time = 69/Rate of Interest as Whole Number

Rule of 72

Go Rule of 72 = 72/Rate of Interest as Whole Number

Perpetuity Payment Formula

Perpetuity Payment = Present Value*Rate per Period
PMT_perpetuity = PV*r

What is Perpetuity Payment?

A perpetuity payment is a concept often encountered in finance and investment scenarios. It refers to a series of equal cash flows that are paid out at regular intervals and continue indefinitely into the future. The defining characteristic of perpetuity payments is their perpetual nature, meaning there is no specified end date for the cash flows. This makes them distinct from other financial instruments or investments that have a finite duration. In practical terms, perpetuity payments can represent various financial arrangements. For instance, a perpetuity payment could be a dividend payment made by a company to its shareholders at regular intervals, with the expectation that these payments will continue indefinitely. Similarly, certain types of bonds or securities may also involve perpetuity payments, where the issuer commits to paying a fixed amount of interest regularly without a maturity date.

How to Calculate Perpetuity Payment?

Perpetuity Payment calculator uses Perpetuity Payment = Present Value*Rate per Period to calculate the Perpetuity Payment, The Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely. Perpetuity Payment is denoted by PMT_perpetuity symbol.

How to calculate Perpetuity Payment using this online calculator? To use this online calculator for Perpetuity Payment, enter Present Value (PV) & Rate per Period (r) and hit the calculate button. Here is how the Perpetuity Payment calculation can be explained with given input values -> 5 = 100*0.05.

FAQ

What is Perpetuity Payment?

The Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely and is represented as PMT_perpetuity = PV*r or Perpetuity Payment = Present Value*Rate per Period. The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time & The Rate per Period is the interest rate charged.

How to calculate Perpetuity Payment?

The Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely is calculated using Perpetuity Payment = Present Value*Rate per Period. To calculate Perpetuity Payment, you need Present Value (PV) & Rate per Period (r). With our tool, you need to enter the respective value for Present Value & Rate per Period and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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