Perpetuity Formula Explained: How to Calculate Perpetuity Value

Written by MasterClass

Last updated: Aug 5, 2022 • 3 min read

In corporate finance, certain investments yield annual returns for an infinite period of time. In other words, pending certain unforeseen events, investors can expect cash payments from these perpetuities long into the future. Learn how you can use a perpetuity formula to gain better insight into how much of a return you can expect from investments like these.