Modified Internal Rate of Return (MIRR) Calculator
Calculate MIRR with precision for better investment decisions
Enter your cash flows in chronological order. Negative values for investments, positive for returns.
Interest rate for the cost of investment (discount rate for negative cash flows)
Interest rate for reinvested positive cash flows
Calculating MIRR…
MIRR Calculation Results
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📈 Input Summary
🔢 Calculation Breakdown
💡 Interpretation
💼 How to Use the MIRR Calculator
- Enter your series of cash flows in chronological order (negative for investments, positive for returns)
- Set the finance rate (cost of capital for negative cash flows)
- Set the reinvestment rate (return rate for positive cash flows)
- Click “Calculate” to get your MIRR result with detailed breakdown
📊 What is Modified Internal Rate of Return (MIRR)?
MIRR is an improved version of IRR that addresses the reinvestment rate assumption problem. Unlike IRR, which assumes all cash flows are reinvested at the IRR rate, MIRR allows you to specify separate rates for financing and reinvestment, providing a more realistic measure of investment performance.
🎯 Key Benefits of MIRR:
- More realistic reinvestment assumptions
- Eliminates multiple IRR problems
- Better for comparing mutually exclusive projects
- Provides clearer investment decision criteria
📈 MIRR Formula:
MIRR = [(FV of positive cash flows / PV of negative cash flows)^(1/n)] – 1
Where n = number of periods – 1