Present value of growing annuity

Present value of growing annuity is the calculation of present value of a series of cash flows that grow at a constant rate for each period / year.

The present value of a growing annuity is calculated using the following formula :

PVGA = [ P / ( r – g) ] * [ 1 –  ( ( 1 + g ) / ( 1 + r ) ) n ]


PVGA = Present value of growing annuity    ;   P = First year payment    ; g = growth rate ;  r = Discount rate / rate of interest  ; n = Number of years ;

In the calculator below insert the values of First year payment, growth rate, Discount rate and Number of years to arrive at the Present value of growing Annuity.

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