Growing Annuity Calculator
Find the present value of a growing annuity, a stream of payments that rises at a steady rate each period, like an income that keeps pace with inflation.
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- No sign-up
Enter the first payment, rates and periods to see the present value.
Worked example
With these example inputs:
- First payment$10,000
- Discount rate6%
- Growth rate2%
- Number of periods20
Present value: $134,169
- Periods20
- If the rate were 1 point lower$146,654
- If the rate were 1 point higher$123,201
Frequently asked questions
What is a growing annuity?
It is a series of payments that increases by a fixed percentage each period. Its present value discounts those rising payments back to today at the discount rate.
What if growth equals the discount rate?
When the two rates match, the usual formula breaks down, so the present value is simply the first payment times the periods, discounted by one period. This tool handles that case.