Perpetual Annuity

A perpetual annuity is a constant income stream made up of regularly recurring, identical payments which are paid out to a recipient from a lump sum of capital (the principal) for an unlimited amount of time without reducing or increasing the amount of capital making up the principal.

To put it in simpler term, a perpetual annuity is a regular, constant income stream paid out for an unlimited amount of time.

This is possible because the recurring annuities paid out from the principal are identical to the returns earned through the investment of the principal. You can use the interactive perpetual annuity calculator to better understand how perpetual annuities work.

Important: The term perpetual annuity is used in a broader sense to include annuities which are paid out for an unlimited amount of time, but at irregular intervals and in variable amounts.

More on this topic:
Perpetual annuity calculator

Online trading brokers in comparison

Find the cheapest online broker now

Compare now
Trading platforms

Brokers with low fees

Swiss Broker


  • Swiss online bank

  • No additional exchange charges

  • No transaction fees for Swiss equities

Swiss Broker

Saxo Bank Switzerland

  • Swiss online bank

  • Favorable prices stock trading

  • High account interest rates

Swiss Broker


  • Swiss online bank

  • No custody fees for stocks

  • Free market research and trading signals

Wealth managers in comparison

Find the most favorable wealth management now

Compare now for free
Expert Benjamin Manz
Benjamin Manz is CEO of and an independent expert on banking and finance.