Free · General investment calculators 🤑

Ordinary Annuity Present Value Factor Calculator

Calculate a present-value annuity factor and the value of equal end-of-period payments at a positive discount rate.

  • Formula & worked example
  • Private in your browser
  • No signup
Go to tool

Calculator inputs

Loading calculator…

How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Two end-of-period payments of 100 discounted at 25% per period have a factor of 1.44 and a present value of 144: 100/1.25 plus 100/1.25².

PVIFA = [1 − (1 + r)^(−n)] / r; present value = payment × PVIFA

Worked example

Enter these known values and leave the other values blank.

Discount rate per payment period
25 %
Number of end-of-period payments
2
Equal payment amount
100 USD
Present value factor
1.44
Present value of payments
144 USD

Assumptions and limitations

  • Use a positive discount rate, a positive whole number of payments and positive payment amounts. The rate period must match the payment interval.
  • Payments occur at each period end. Payments at the beginning of each period require an annuity-due adjustment. This input model does not support the zero-rate limit.

Common questions

Can I enter an annual rate for monthly payments?

First convert the annual rate to a rate for the monthly payment period using the intended compounding convention. Entering an annual rate directly would overstate each period’s discounting.

What if the discount rate is zero?

Mathematically, the factor is the number of payments and the value is their undiscounted sum. This calculator’s positive-rate formula rejects zero instead of dividing by zero.

References

Bookify adds explicit model-domain checks: Use a positive whole number of end-of-period payments.

Explore general investment calculators 🤑 or browse all finance calculators.