# Present Value of a Perpetuity Calculator

LAST UPDATE: April 8th, 2018

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

Present value (PV) of an annuity is a financial calculation used when determining the “today” value of a set of annuity payments that occur each compounding period that goes 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 Perpetuity calculated?

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