Growing Annuity Calculator

About this calculator

A growing annuity is a series of periodic payments that increases by a fixed growth rate each period, rather than staying flat like a standard annuity — think of a pension with cost-of-living adjustments, or rent payments that step up annually. Its present value has a closed-form formula: PV = [C / (r − g)] × [1 − ((1 + g)/(1 + r))^n], where C is the first payment, r is the discount rate, g is the growth rate per period, and n is the number of periods.

Analysts use this formula to value income streams that are expected to rise over time — salary offers with built-in raises, dividends expected to grow, or lease payments with escalation clauses — because discounting each payment individually would be tedious and error-prone. This calculator takes your first payment, growth rate, discount rate, and number of periods and returns the present value of the entire growing stream.