Present value interest factor

In economics, Present value interest factor, also known by the acronym PVIF, is used in finance theory to refer to the output of a calculation, used to determine the monthly payment needed to repay a loan. The calculation involves a number of variables, which are set out in the following description of the calculation:

Formula

Let:
Then:
where
In its simplest form, PVIF is calculated using the formula:
where is the discount rate and is the number of periods.