Finance
Instant, private, and free
Modified Internal Rate of Return Calculator.
Calculate MIRR from periodic cash flows and finance and reinvestment rates.
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Results update as you type.
FAQs
How does the modified irr calculator work?
Enter the requested values to receive a deterministic result. No live market, tax, or jurisdiction data is inferred.
Use Cases
Evaluate investment projects
Use MIRR to compare different investment opportunities by accounting for realistic reinvestment and financing costs, helping you choose the most profitable project.
Example: Compare two projects with different cash flow patterns and reinvestment rates.
Assess project viability
Determine if a project's MIRR exceeds the required rate of return, indicating that the project is worth pursuing.
Example: If MIRR > cost of capital, the project is likely a good investment.
Frequently Asked Questions
- What is the Modified Internal Rate of Return (MIRR)?
- MIRR is a financial metric that measures the profitability of an investment by assuming that positive cash flows are reinvested at the reinvestment rate and negative cash flows are financed at the finance rate. It provides a more realistic picture than the traditional IRR.
- How is MIRR different from IRR?
- IRR assumes that all cash flows are reinvested at the IRR itself, which can be unrealistic. MIRR allows you to specify separate finance and reinvestment rates, giving a more accurate measure of an investment's return.
- What inputs do I need to calculate MIRR?
- You need to provide the periodic cash flows (including the initial investment as a negative value), the finance rate (cost of borrowing), and the reinvestment rate (rate at which positive cash flows can be reinvested).
Tips & Common Mistakes
Tips
- Ensure the initial investment is entered as a negative number to represent cash outflow.
- Use realistic finance and reinvestment rates based on your actual borrowing and investment opportunities.
- For accurate comparison, use the same finance and reinvestment rates for all projects you are evaluating.
- MIRR is particularly useful when cash flows are irregular or when the IRR gives multiple values.
Common Mistakes to Avoid
- Forgetting to include the initial investment as a negative cash flow, which leads to incorrect MIRR.
- Using the same rate for both finance and reinvestment when they differ in reality, which defeats the purpose of MIRR.
- Ignoring the timing of cash flows; ensure they are entered in the correct order and at equal intervals.
Last updated: August 13, 2026