PVIFA Calculator

Calculate Present Value Interest Factor of Annuity (PVIFA) for financial analysis. Analyze annuity factors, present value calculations, and investment planning.

✓ Annuity Factor ✓ Present Value ✓ Financial Analysis

PVIFA Calculator

Calculation Mode

Interest Rate & Periods

Annual interest rate

Total number of payment periods

Annuity Type & Analysis

Years for sensitivity analysis

Min and max rates for analysis

PVIFA Formula

Present Value Interest Factor of Annuity

Formula:

PVIFA: [1 - (1 + r)^-n] / r
PV: PMT × PVIFA
Where r = interest rate, n = periods, PMT = payment

Quick Examples

Standard Annuity
8% rate, 10 periods
Retirement Planning
6% rate, 20 periods
Loan Analysis
$500 payment, PVIFA 7.7217

Applications

Annuities: Retirement and pension planning
Loans: Payment and valuation analysis
Bonds: Coupon payment valuation
Leases: Present value of lease payments

Sample PVIFA Values

Rate 5 Years 10 Years
5%4.32957.7217
8%3.99276.7101
10%3.79086.1446
12%3.60485.6502
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Understanding PVIFA

PVIFA (Present Value Interest Factor of Annuity) is a factor used to calculate the present value of a series of equal payments made at regular intervals.

  • Annuity Factor: Simplifies present value calculations for regular payments
  • Time Value: Accounts for the time value of money in payment streams
  • Interest Rate Sensitivity: Shows how changes in rates affect present values
  • Financial Planning: Essential for retirement and investment planning

PVIFA Applications

Retirement Planning

Calculate present value of pension payments and annuities.

Loan Analysis

Determine present value of loan payments and financing costs.

Investment Valuation

Value bonds, preferred stocks, and other income-producing assets.

Lease Analysis

Calculate present value of lease payments for decision making.