PVIFA Calculator

Calculate Present Value Interest Factor of Annuity (PVIFA)



Formula

The formula to calculate the Present Value Interest Factor of Annuity (PVIFA) is:

\[ \text{PVIFA} = \frac{1 - (1 + r)^{-n}}{r} \]

Where:

What is PVIFA?

PVIFA is defined as the present value of the interest factor of an annuity. This factor is often used to determine the present value of an ordinary annuity or a series of annuities. This is done by multiplying a recurring payment by the factor.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Present Value Interest Factor of Annuity (PVIFA):

\[ \text{PVIFA} = \frac{1 - (1 + 0.05)^{-10}}{0.05} \approx 7.7217 \]

The Present Value Interest Factor of Annuity is approximately 7.7217.