The PVIFA calculator finds the present value interest factor of annuity (PVIFA for short) for your newest investment.OmniCalculatorlogoWe’rehiring!EmbedShareviaInterestrateperperiod(r)%Numberofperiods(n)PVIFAAdvancedmodeCheckout92similarinvestmentcalculators📈401kAfter-taxcostofdebtAnnuity…89morePVIFACalculatorByBognaSzykLastupdated:Jun04,2020Tableofcontents:WhatisPVIFA?PVIFAformulaHowtousethePVIFAcalculator?AnexamplePVIFAtableIfyouhaveachoicebetweenamassivesumofmoneyoranannuity,andyou'renotsurewhichonetopick,thisPVIFAcalculatorisyournewbestfriend.Inthisarticle,wewillusesimpleexamplestoshowyouwhatisPVIFA.andhowyoucanutilizeitininvestmentdecisions.WewillalsoprovideyouwithasmallPVIFAtableforquickreference.WhatisPVIFA?PVIFAisanabbreviationforPresentValueInterestFactorofAnnuity.Itisanideabasedonthetimevalueofmoney:themoneyyouhavenowisworthmorethanthesameamountofmoneyafewyearsfromnow.Whyismoneyworthmoretoday?Thereasonissimple-youcandecidetoinvestitsothatitwillgenerateinterest.Allthatpotentiallyearnedmoneyincreasesthevalueofthecashyouhaverightnow.Now,imagineyou'regivenachoice:youcaneithergetaconsiderablesumofmoneytodayorregularpaymentsspreadoverafewyears(alsocalledannuitypayments).Whichoptionshouldyouchoose?It'satrickyquestion,becausethefuturevalueofannuityisdifferentthanthesameamountofmoneytoday.Toanswerit,youneedtousethisPVIFAcalculator.PVIFAformulaNowthatweknowwhatisPVIFA,andhowtouseit,let'stransformourknowledgeintoamathematicalequation.ThePVIFAformulalookslikethis:PVIFA=(1-(1+r)-n)/rwhere,PVIFAisthepresentvalueinterestfactorofannuity;ristheinterestrateperperiod,expressedasadecimal;andnisthenumberofperiods(years).WecanusethisPVIFAformulatofigureoutwhat'sthefuturevalueofeightconsecutivepayments,obtainedonceayearataninterestrateof4%peryear.How?Let'stakealookatanexamplebelow.HowtousethePVIFAcalculator?AnexampleImagineyouhaveinvestedinapromisingstartupwhichproduces3Dprinters.Yourinvestmentwillresultinyougettingeightpaymentsof$3,000-oneperyear.Theinterestrate,aswementionedab