Growing perpetuity factor

Financial maths.

(GPF).

A growing perpetuity factor is the fraction 1/(r-g), used when evaluating a growing perpetuity.

Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.

It also assumes a constant compound rate of growth (g) from the first cashflow to infinity.

Sometimes known as the Growing perpetuity formula.

See also

• Annuity factor
• Compound
• Cost of capital
• Growing annuity factor
• Growing perpetuity
• Perpetuity
• Perpetuity factor