PVIFA Calculator

Calculate the Present Value Interest Factor of Annuity (PVIFA) using the interest rate and number of periods.

The PVIFA calculator is a handy tool. It helps find the Present Value Interest Factor of an Annuity (PVIFA). This is useful in finance to value streams of future payments at a present-day value. With just the interest rate and periods, you can make quick financial decisions.

How to Calculate PVIFA

PVIFA is determined using the interest rate and periods. It measures the present value of equal, recurring payments.

Formula for PVIFA

The formula for PVIFA is:

PVIFA = \frac{1 – (1 + r)^{-n}}{r}

Variables in the Formula

More Calculators

Here are the variables explained:

Variable	Description
r	Interest rate per period (decimal form).
n	Total number of payment periods.

Solved Calculations

Example 1

Step	Calculation
Interest Rate (r)	5% or 0.05
Number of Periods (n)	10
Formula	$\frac{1 – (1 + 0.05)^{-10}}{0.05}$
Step 1: Calculate $(1 + r)^{-n}$	$(1 + 0.05)^{-10} = 0.6139$
Step 2: Subtract from 1	$1 – 0.6139 = 0.3861$
Step 3: Divide by r	$0.3861 / 0.05 = 7.722$
PVIFA	7.722

Example 2

Step	Calculation
Interest Rate (r)	7% or 0.07
Number of Periods (n)	5
Formula	$\frac{1 – (1 + 0.07)^{-5}}{0.07}$
Step 1: Calculate $(1 + r)^{-n}$	$(1 + 0.07)^{-5} = 0.7130$
Step 2: Subtract from 1	$1 – 0.7130 = 0.2870$
Step 3: Divide by r	$0.2870 / 0.07 = 4.1$
PVIFA	4.1

PVIFA Calculator