Future Value of $1 Annuity Factor (FVIFA)
Calculate the FVIFA factor used to determine the future value of an ordinary annuity.
Understanding FVIFA
The Future Value Interest Factor of an Annuity (FVIFA) is a multiplier used to calculate the future value of a series of equal, regular payments (an ordinary annuity) at a specific interest rate over a certain number of periods.
How to Use the Factor
Instead of looking up the factor in a massive textbook table, this calculator generates the exact factor. You simply multiply your recurring payment amount by the FVIFA to find your future total value.
Worked Example
- Interest Rate: 5% per period
- Periods (n): 10
- FVIFA Factor: 12.57789
- If you invest $1,000 every year, Future Value = $1,000 * 12.57789 = $12,577.89.
Frequently Asked Questions
What is the difference between an ordinary annuity and an annuity due?
This FVIFA factor assumes an ordinary annuity, where payments are made at the end of each period. If payments are made at the beginning, you must multiply the result by (1 + r).
Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.