The present value interest factor PVIF is a formula used to estimate the current worth of a sum of money that is to be received at some future date. PVIFs are often presented in the form of a table with values for different time periods and interest rate combinations. The present value interest factor is based on the key financial concept of the time value of money. That is, a sum of money today is worth more than the same sum will be in the future, because money has the potential to grow in value over a given period of time. Provided money can earn interest, any amount of money is worth more the sooner it is received. Present value impact factors are often used in analyzing annuities.
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Not a member? Thank You for trying our tools. If you liked our tools please give a thumbs up to our Facebook page and share it with your friends. We have noted the error and will address it soon. Send us a feedback with your email address if you want to be notified. What does PVIF mean? This present value factor provides a simple evaluation to determine the present value dollar amount of a sum of money to be received in future.
Using the above formula Evaluate PVIFA or present value interest factor of annuity, a factor used to determine the present value of a series of annuities.
Evaluate the present value of an investment based on the future value of the investment, the total number of time periods and the discount rate. Tax Calculator Sales Tax Calculator. Retail Discount Calculator. You must be logged in to perform this action. Sign in Email. Remember me? PVIF Calculator. Oct 24, 0 Comments. PVIF is used to determine the future discounted rate of a selected value as well as the current value of a particular series for a set number of periods.
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Present Value Interest Factor (PVIF)