PVIFA Calculator - Present Value Interest Factor of Annuity

Your details

The discount or interest rate for one period. Enter as a percentage (e.g. 4 for 4%). For monthly payments on a 6% annual rate, enter 0.5.
%
How many equal payment periods the annuity covers. Use years for annual payments, months for monthly payments, etc.
The equal payment made each period. Leave at 0 to calculate only the PVIFA factor without a dollar value. When provided, the calculator also shows the total present value.
Ordinary annuity: payments occur at the end of each period (most loans and bonds). Annuity due: payments occur at the start (most leases and insurance premiums).
Currency
PVIFA
6.732745

Present value interest factor of annuity

Present value of annuity$6,732.74
Total undiscounted payments$8,000.00
Time-value discount$1,267.26
Present value$6,732.74
Time-value discount$1,267.26

PVIFA = 6.7327 at 4% for 8 periods.

  • A PVIFA of 6.7327 means each dollar of periodic payment is worth $6.7327 in today's money over 8 periods at 4% per period.
  • Your 8 payments of 1,000 total 8,000 undiscounted, but are worth only 6,732.74 today, a time-value discount of 15.8%.
  • Because this is an ordinary annuity, payments arrive at the end of each period. Switching to an annuity due would increase PVIFA by 4% to approximately 7.0021.
  • Higher interest rates lower PVIFA (future payments are worth less today), while more periods raise it (more payments accumulate in present value).

Next stepMultiply PVIFA by any equal periodic payment to find the lump-sum present value, useful for valuing loans, bonds, leases, and retirement income streams.

 = Powered by OnlyCalculators