Enter the interest rate per period and number of periods to calculate the present value interest of annuity using this PVIFA calculator.SkiptocontentCalculatorAcademyMenuCalculatorAcademyMenuEntertheinterestrateperperiodandnumberofperiodstocalculatethepresentvalueinterestfactorofanannuityusingthisPVIFAcalculator.EBITDACalculatorQuickRatioCalculatorMarkUpCalculatorOrdinaryAnnuityCalculatorPVIFAFormulaTheformulaforcalculatingthepresentvalueinterestfactorofannuityisasfollows:PVIFA=(1-(1+r)^-n)/rWhereristheinterestrateperperiodnisthenumberofperiodsPVIFADefinitionWhatisPVIFA?PVIFAisdefinedasthepresentvalueoftheinterestfactorofanannuity.Thisfactorisoftenusedtodetermineanordinaryannuityorthepresentvalueofsomeseriesofannuities.Thisisdonebymultiplyingarecurringpaymentbythefactor.WhatdoesPVIFAmeanineconomics?PVIFAisatermusedinthefieldsofeconomics,finance,andaccounting.PVIFAstandsforthepresentvalueofinterestfactoroftheannuity.WhatisPVIFAusedfor?PVIFAisusedtodeterminewhethertakingasinglepaymentimmediatelyorseveralannuitypaymentsinthefutureismorebeneficialtoanindividualorbusiness.Inotherwords,whetherthereismorevalueinfuturepaymentsofasinglepaymentnow.Thisfactorcanonlybeusedwhenthepaymentsinthefutureareconstantandknown.HowtocalculatePVIFA?First,determinetheaverageinterestrateperperiod.Theinterestrateperperiodistypicallyconstant,butifitisnot,usetheaverageofalloftheperiods.Forthisexample,wewillassumeastandardyearlyreturnof8%.Next,determinethenumberofperiods.Forthisproblem,thetimeperiodbeinganalyzedis5yearslong,whichisequalto5periods.Finally,calculatethePVIFA.Usingtheformulaabove,thePVIFAisdeterminedtobe(1-(1+.08)^5)/.08=3.992PVIFATableThefollowingtableshowsPVIFAvaluesforperiodsof1to50andinterestratesfrom1%to22%.HowtodoPVIFAtableinexcel?Thebelowtablewascreatedusingexcel.Toreplicatethistable,setupthedesiredperiodsandinterestratesandthenusethecellformulainthe1x1location(shownboldbelow)as=(1-(1+$B$2)^(-A3))/($B$2).Afterward,dragtheformulatotherightandthendowntofillthetables.HomeCalcula