PVIFA Calculator is used to calculate the PVIFA or Present Value Interest Factor of Annuity, a factor used to determine the present value of a series of annuities

- PVIFA:
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- What does PVIFA mean?
- The present value interest factor of annuity or PVIFA by it the present value of a series of annuities can be evaluated. It considers an assumed interest rate per period and number of periods.

- Importance of PVIFA
- This financial tool is used to determine the present value interest factor of annuity, a value through which the present value of an annuity series.

- Formula
PVIFA = [1 - (1 + r) - N] / r

Where:-

- -N = (-1) * Number of periods
- r = Assumed interest rate per period

- Example
- A person took a loan for $2500 and will pay back $500/year. At a 5% rate and the annuity factor on the loan is 4.33. Therefore, the annuity factor gives a present value of $2,165.