PVIFA tables were used before calculators to value annuities, loans and leases. Multiplying the factor by the payment gives the present value; dividing a loan amount by it gives the payment.
How to use the PVIFA Calculator – Present Value Interest Factor of an Annuity
- Interest rate per period
- Number of periods
- Payment per period
- Annuity type
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the interest rate per period, the number of periods and, optionally, the payment.
Tips
- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.
Common mistakes to avoid
- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).
Inputs explained
| Field | What to enter |
|---|---|
| Interest rate per period | In % |
| Number of periods | A number |
| Payment per period | Amount in your currency |
| Annuity type | Choose one: Ordinary annuity, Annuity due |
What each result means
- PVIFA = pvann([Interest rate per period]÷100, [Number of periods], 1, [Annuity type])
- Present value of the payments = [Payment per period]×[PVIFA]
- FVIFA (future value factor) = fvc([Interest rate per period]÷100, [Number of periods], 0, 1, [Annuity type])
Example values
How the main result changes when Interest rate per period changes and everything else stays at the example values above:
| Interest rate per period (%) | PVIFA |
|---|---|
| 2.5 | 8.7521 |
| 3.75 | 8.2128 |
| 5 | 7.7217 |
| 6.25 | 7.2737 |
| 7.5 | 6.8641 |
| 10 | 6.1446 |
Formula
PVIFA = [1 − (1 + r)^−n] ÷ rPV of annuity = payment × PVIFAAnnuity due: PVIFA × (1 + r)Worked example
Inputs — Interest rate per period: 5 %; Number of periods: 10; Payment per period: $1,000; Annuity type: Ordinary annuity.
Results — PVIFA = 7.72173; Present value of the payments = $7,721.73; FVIFA (future value factor) = 12.57789.
Frequently asked questions
What is PVIFA?
The present value of an annuity paying $1 per period.
How is PVIFA used?
Multiply it by the payment to get the annuity's present value.
What about an annuity due?
Multiply the factor by (1 + r).
What formula does the PVIFA Calculator – Present Value Interest Factor of an Annuity use?
PVIFA = [1 − (1 + r)^−n] ÷ r.