What this calculator does
Growing annuity present value works out present value of a stream of payments that increases by a fixed rate each period. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
The inputs explained
| Field | What to enter |
|---|---|
| First payment (next period) ($) | A number, measured in your currency. Starts at 10000. |
| Discount rate (%) | A number, measured in %. Starts at 8. |
| Growth rate per period (%) | A number, measured in %. Starts at 3. |
| Number of periods | A number. Starts at 20. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with first payment (next period)
Every other input is held at the calculator’s starting values while first payment (next period) varies. Select any row to load that scenario into the calculator.
| First payment (next period) ($) | Present value | Final payment (period 20) | Total of all payments, undiscounted |
|---|---|---|---|
| 5,000 | $61,250.21 | $8,767.53 | $134,351.87 |
| 7,500 | $91,875.31 | $13,151.30 | $201,527.81 |
| 10,000 | $122,500.41 | $17,535.06 | $268,703.74 |
| 15,000 | $183,750.62 | $26,302.59 | $403,055.62 |
| 20,000 | $245,000.83 | $35,070.12 | $537,407.49 |
| 30,000 | $367,501.24 | $52,605.18 | $806,111.23 |