Present Value Factor Calculator

✖The Rate per Period is the interest rate charged.ⓘ Rate per Period [r]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n_Periods]			+10% -10%

✖Annuity Present Value Factor is the multiplier used to calculate the present value of a series of equal periodic payments discounted at a specific interest rate over a certain number of periods.ⓘ Present Value Factor [F_PVA]

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Formula

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Present Value Factor

Formula

`"F"_{"PVA"} = (1-((1+"r")^(-"n"_{"Periods"})))/"r"`

Example

`"1.85941"=(1-((1+"0.05")^(-"2")))/"0.05"`

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Present Value Factor Solution

STEP 0: Pre-Calculation Summary

Formula Used

Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period
F_PVA = (1-((1+r)^(-n_Periods)))/r
This formula uses 3 Variables

Variables Used

Annuity Present Value Factor - Annuity Present Value Factor is the multiplier used to calculate the present value of a series of equal periodic payments discounted at a specific interest rate over a certain number of periods.
Rate per Period - The Rate per Period is the interest rate charged.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

STEP 1: Convert Input(s) to Base Unit

Rate per Period: 0.05 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

F_PVA = (1-((1+r)^(-n_Periods)))/r --> (1-((1+0.05)^(-2)))/0.05

Evaluating ... ...

F_PVA = 1.859410430839

STEP 3: Convert Result to Output's Unit

1.859410430839 --> No Conversion Required

FINAL ANSWER

1.859410430839 ≈ 1.85941 <-- Annuity Present Value Factor

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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< 19 Present value Calculators

Present Value of Deferred Annuity

Go Present Value of Deferred Annuity = Ordinary Annuity Payment*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01)^Deferred Periods*(Interest Rate*0.01)))

Present Value of Deferred Annuity based on Annuity Due

Go Present Value of Deferred Annuity = Annuity Payment Due*(1-(1+(Interest Rate*0.01))^-Number of Periods)/((1+(Interest Rate*0.01))^(Deferred Periods-1)*(Interest Rate*0.01))

Present Value of Growing Annuity

Go Present Value of Growing Annuity = (Initial Investment/(Rate per Period-Growth Rate))*(1-((1+Growth Rate)/(1+Rate per Period))^(Number of Periods))

Growing Annuity Payment using Present Value

Go Initial Payment = Present Value*((Rate per Period-Growth Rate)/(1-(((1+Growth Rate)/(1+Rate per Period))^Number of Periods)))

Annuity Due for Present Value

Go Annuity Due Present Value = Payment made in Each Period*((1-(1/(1+Rate per Period)^(Number of Periods)))/Rate per Period)*(1+Rate per Period)

Present Value of Future Sum given compounding periods

Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)

Number of Periods using Present Value of Annuity

Go Total Number of Periods = ln((1-(Present Value of Annuity/Cashflow per Period))^-1)/ln(1+Rate per Period)

Present Value of Ordinary Annuities and Amortization

Go Present Value = Payment made in Each Period*((1-(1+Rate per Period)^(-Total Number of Times Compounded))/Rate per Period)

Present Value of Annuity with Continuous Compounding

Go Present Value of Annuity = Cashflow per Period*((1-e^(-Rate per Period*Number of Periods))/(e^Rate per Period-1))

Present Value of Annuity

Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))

Present Value of Future Sum given Number of Periods

Go Present Value = Future Value/exp(Rate of Return*Number of Periods)

Present Value for Continuous Compounding

Go Present Value with Continuous Compounding = Future Value/(e^(Rate per Period*Number of Periods))

Present Value Factor

Go Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period

Present Value of Stock with Constant Growth

Go Price of Stock = Estimated Dividends for Next Period/((Rate of Return*0.01)-Growth Rate)

Present Value of Lumpsum

Go Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods

Present Value of Future Sum given Total Number of Periods

Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods

Present Value Continuous Compounding Factor

Go PV Continuous Compounding Factor = (e^(-Rate per Period*Total Number of Periods))

PV of Perpetuity

Go PV of Perpetuity = Dividend/Discount Rate

Present Value of Stock with Zero Growth

Go Price of Stock = Dividend/Rate of Return

Present Value Factor Formula

Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period
F_PVA = (1-((1+r)^(-n_Periods)))/r

What is Present Value Factor?

The Present Value Factor, also known as the Present Value of an Annuity factor, is a mathematical value used to calculate the present value of a series of equal periodic payments or receipts. It represents the multiplier by which each payment is discounted to its present value based on a specified interest rate and the number of periods involved. The formula for calculating the present value of an annuity involves multiplying the annuity PV factor by the periodic payment amount. This concept is commonly used in finance for analyzing loans, leases, and other financial arrangements involving regular payments.

How to Calculate Present Value Factor?

Present Value Factor calculator uses Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period to calculate the Annuity Present Value Factor, The Present Value Factor is the multiplier used to calculate the present value of a series of equal periodic payments or receipts discounted at a specific interest rate over a certain number of periods. Annuity Present Value Factor is denoted by F_PVA symbol.

How to calculate Present Value Factor using this online calculator? To use this online calculator for Present Value Factor, enter Rate per Period (r) & Number of Periods (n_Periods) and hit the calculate button. Here is how the Present Value Factor calculation can be explained with given input values -> 1.85941 = (1-((1+0.05)^(-2)))/0.05.

FAQ

What is Present Value Factor?

The Present Value Factor is the multiplier used to calculate the present value of a series of equal periodic payments or receipts discounted at a specific interest rate over a certain number of periods and is represented as F_PVA = (1-((1+r)^(-n_Periods)))/r or Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period. The Rate per Period is the interest rate charged & The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

How to calculate Present Value Factor?

The Present Value Factor is the multiplier used to calculate the present value of a series of equal periodic payments or receipts discounted at a specific interest rate over a certain number of periods is calculated using Annuity Present Value Factor = (1-((1+Rate per Period)^(-Number of Periods)))/Rate per Period. To calculate Present Value Factor, you need Rate per Period (r) & Number of Periods (n_Periods). With our tool, you need to enter the respective value for Rate per Period & Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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