What is the Perpetuity Calculator?

The Perpetuity Calculator is a simple financial tool that helps users determine the present value of a perpetuity based on a fixed annual payment and an interest rate. By entering the yearly cash flow and the required rate of return, the calculator instantly computes the perpetuity’s value using the standard financial formula. This tool is especially useful for students, investors, and finance professionals who need quick and accurate results without doing manual calculations. It ensures clarity, saves time, and provides a reliable estimate of long-term financial value.

How to Use:

1. Enter Annual Payment (PKR): Type the fixed yearly amount you expect to receive.
2. Enter Interest Rate (%): Provide the discount or required return rate.
3. Click “Calculate”: The tool computes the perpetuity value using the formula.
4. Review Result: The output will display the annual payment, interest rate, and the final calculated perpetuity value along with the formula for reference.