MIRR Calculator
Calculate Modified Internal Rate of Return (MIRR) with separate finance and reinvestment rates.
Investment Details
$100,000
$10,000$10,000,000
8%
1%25%
12%
1%25%
Year 1
Year 2
Year 3
Year 4
Year 5
Modified Internal Rate of Return (MIRR)
16.56%
Traditional IRR: 19.71%
Traditional IRR
19.71%
IRR vs MIRR Difference
-3.15%
Terminal Value
$215,190
FV of positive cash flows
PV of Costs
$100,000
PV of negative cash flows
MIRR vs IRR Comparison
Traditional IRR19.71%
MIRR16.56%
MIRR typically gives a more realistic return estimate as it uses actual finance and reinvestment rates
MIRR Formula
MIRR = (FV of positive cash flows / PV of negative cash flows)^(1/n) - 1
Why MIRR?
MIRR addresses IRR limitations by using realistic rates for reinvestment and financing, avoiding multiple IRR problems.
Rate Assumptions
Finance rate: cost of borrowing. Reinvestment rate: expected return on reinvested cash flows (often WACC).