Present Value (PV) of a growing perpetuity (Gordon Growth Model) calculator

What is a Present Value (PV) of a Growing Perpetuity?

Present value (PV) of an annuity is a financial calculation used when determining the “today” value of an set of annuity payments that regularly grow and occur each compounding period that go on forever.
As this calculator is structured to parallel the results of a financial calculator, inputs and outputs will be similar – for example, a negative present value (or payment) means an outflow as opposed to a directly negative number.

How is the Present Value of a Growing Perpetuity calculated?

The PV of a growing perpetuity is calculated through the Gordon Growth Model, a financial formula used with the time value of money.
$\text{Present Value} = \frac{\text{Payment Amount}}{\text{Interest Rate} - \text{Payment Growth Rate}}$

What is the Payment Growth Amount?

The payment growth amount is the amount that the payment grows each compounding period.