PVIFA Calculator


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.
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