Present Value of $1 Annuity Table
A vital tool for finance students and professionals. This generator creates a PVIFA reference grid, showing the current value of a stream of $1 payments over any timeframe.
What is a Present Value Interest Factor of an Annuity (PVIFA)?
PVIFA is a factor used to calculate the present value of a series of equal payments (an annuity). It represents the current worth of receiving $1 at regular intervals for a set number of periods, discounted at a specific interest rate.
How do I use this table?
Locate your interest rate in the columns and the number of periods in the rows. The factor at their intersection is the value of a $1 annuity. Multiply this factor by your actual periodic payment to find the total present value.
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity assumes payments are made at the END of each period. An annuity due assumes payments are made at the BEGINNING of each period. The factor for an annuity due is always higher because payments are received sooner.
Why is the factor for 1 period at 0% interest exactly 1.000?
At 0% interest, there is no discount for time. Receiving $1 today is worth exactly $1. For an annuity of multiple periods at 0%, the factor would simply be equal to the number of periods (e.g., 5 periods = 5.000).