MIRR

Excel Functions

Calculate modified internal rate of return

Syntax

EXCEL

=MIRR(values, finance_rate, reinvest_rate)

Arguments

Parameter	Description
`values`	Array or reference to cells that contain cash flows.
`finance_rate`	Required rate of return (discount rate) as percentage.
`reinvest_rate`	Interest rate received on cash flows reinvested as percentage.

Return Value

Calculated return as percentage

Details

The standard Internal rate of return function (IRR) assumes all cash flows are reinvested at the same rate as the IRR. The modified internal rate of return function (MIRR) accepts both the cost of investment (discount rate) and a reinvestment rate for cash flows received. In the example shown, the formula in F6 is: In this example, we assume that the reinvestment rate is the same as the cost of capital, so we set both the finance_rate and reinvest_rate to the value in F4, which is 10%.

Examples

Example 1

In the example shown, the formula in F6 is: