PVIFA Calculator — Present Value Interest Factor of Annuity
Find the PVIFA (Present Value Interest Factor of an Annuity) and the current lump-sum worth of a stream of equal periodic payments.
%
Payment frequency
Lump-sum value today of all future periodic payments
- 1
Periodic rate
5% ÷ 100 ÷ 1 = 0.05 - 2
Total periods
10 × 1 = 10 - 3
PVIFA factor
(1 − (1 + 0.05)^−10) ÷ 0.05 = 7.7217Bundles the discounting of all future payments into one multiplier. - 4
Present value of annuity
1,000 × 7.7217 = 7,721.73
How does this calculator work?
PVIFA = [1 − (1+r)^(−n)] / r, where r is the periodic rate (annual rate ÷ periods per year) and n is the total periods. Multiply PVIFA by the periodic payment to get the present value of an ordinary annuity — what the entire future payment stream is worth in today's money.
Formula
How this is calculated
The PVIFA answers a fundamental finance question: how much is a series of identical future payments worth in today's money? Because a dollar received in the future is worth less than a dollar now — it cannot be invested in the interim — each payment must be "discounted" back to the present. The PVIFA factor, [1 − (1+r)^(−n)] / r, bundles all of that discounting into one multiplier. Multiply it by the periodic payment amount to get the total present value immediately.
The formula uses r, the periodic interest rate (annual rate ÷ compounding periods per year, divided by 100), and n, the total number of payment periods (years × periods per year). At r = 0 the PVIFA collapses to n because there is no discounting and each payment is worth its face value. As the rate rises, future payments are penalised more heavily and the PVIFA shrinks. For an infinite series (perpetuity) the factor converges to 1/r.
This calculator assumes ordinary annuity timing — payments arrive at the end of each period. If payments arrive at the beginning (annuity-due), multiply the resulting PV by (1 + r) to account for one extra compounding period. The chart shows the cumulative present value as each successive payment arrives, illustrating how much value is captured early versus late in the stream.
Frequently asked questions
PVIFA (Present Value Interest Factor of an Annuity) is the multiplier [1 − (1+r)^(−n)] / r that converts a stream of equal periodic payments into a single present-value lump sum, where r is the periodic interest rate and n is the number of periods.
Multiply the PVIFA factor by the periodic payment: PV = PMT × PVIFA. For example, with PVIFA = 7.7217 and an annual payment of 1,000, the annuity is worth 7,721.70 today.
An ordinary annuity pays at the end of each period — this calculator uses that convention. An annuity-due pays at the start; to get its PV, multiply the ordinary-annuity result by (1 + r) to reflect the one extra compounding period.
Also known as
TG we-Calculate Editorial Team. (2026). PVIFA Calculator — Present Value Interest Factor of Annuity [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/pvifa-calculator
TG we-Calculate Editorial Team. "PVIFA Calculator — Present Value Interest Factor of Annuity." TG we-Calculate. 2026. https://we-calculate.com/calculator/pvifa-calculator.
TG we-Calculate Editorial Team, "PVIFA Calculator — Present Value Interest Factor of Annuity," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/pvifa-calculator
@misc{wecalculate_pvifa_calculator, title = {PVIFA Calculator — Present Value Interest Factor of Annuity}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/pvifa-calculator}}, year = {2026}, note = {TG we-Calculate} }
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