The present value interest factor of an annuity converts equal periodic payments into present value.
| Input | What it means |
|---|---|
| Interest Rate | The quoted rate for the time basis shown in the form; an annual rate is not a monthly rate. |
| Number Of Period | The number to test or transform; use the integer or real-number domain stated in the formula. |
At 10% over 3 periods, PVIFA≈2.48685, so payments of 100 are worth about 248.69 today.
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
Mini Calculator provides online calculators for multiple niches including mathematical, financial, Health, informative, Chemistry, physics, statistics, and conversions. You can use any calculator for free without any limits.