# Growing perpetuity factor

From ACT Wiki

*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.