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MIRR calculator (modified internal rate of return)

Compute periodic MIRR with finance and reinvestment rates on the same annual ladder as our IRR tool: positive initial outlay → negative time-0 flow; later years are signed (inflow +, outflow −). Matches MIRR(values, finance_rate, reinvest_rate) in Google Sheets and Microsoft Excel. Not XIRR / dated flows—not tax- or product advice.

Finance rate (annual %)

Cost of financing for negative cash flows, as an annual percent (e.g. 10 for 10%). Passed as the second argument to MIRR—as a decimal inside the function in your sheet.

Reinvestment rate (annual %)

Return on interim positive cash flows, as an annual percent. Compounded forward to the last period—third argument to MIRR in a spreadsheet.

Initial investment (at year 0)

Positive = money you pay in at the start. We map this to a negative time-0 cash flow, like the IRR calculator and MIRR examples.

Year 1 net cash flow

Use + for net in and − for extra out in that year.

Year 2 net cash flow

Year 3 net cash flow

Up to 50 annual entries after the initial outlay.

Spreadsheet check: MIRR reads the same sign row as IRR—time 0 is usually negative when you type the purchase directly in the sheet.

Result

MIRR (per year, periodic): -12.8462664425%

Educational illustration only. MIRR depends on the two rates you enter—not a market quote, not a promise of future performance, and not investment, tax, or credit advice.

When MIRR helps

You want one headline rate that does not assume interim positives reinvest at the IRR itself—common in capital budgeting courses and models.

Compare project returns when financing and reinvestment should use different annual assumptions than a single IRR root.
Teach MIRR next to IRR so teams see how reinvestment changes the story on the same cash row.
Homework and interview drills that explicitly require MIRR with two rates—annual grid only here.
Move to the IRR calculator when you only need NPV = 0 at one periodic rate; move to XIRR in a sheet for irregular dates.

How do you calculate MIRR here?

MIRR folds two discounting stories into one headline periodic rate: negative flows are present-valued at the finance rate; positive flows are future-valued to the last period at the reinvest rate; then (FV of positives ÷ −PV of negatives)^(1/n) − 1 with n periods from first to last cash flow—aligned with MIRR in Excel / Sheets.

Finance vs reinvestment

Finance rate applies to outflows (negative numbers) at their timing; reinvestment rate applies to inflows (positive numbers), compounded to the terminal date. Both are nominal annual percents on this page, converted to decimals like MIRR expects.

Terminal value and the single MIRR

We sum discounted negatives to a present side and compounded positives to a future side, then solve the single rate that links them across n equal steps—one answer, unlike some multiple-IRR paths.

What this page is not

XIRR on calendar dates, monthly native MIRR without annualizing, tax-adjusted or levered variants, and live WACC feeds—build those in a workbook when you need them.

Treat the output as a teaching line on your numbers—not a board-ready hurdle decision by itself. For periodic IRR without MIRR’s two rates, use the IRR calculator page. For payback and optional discounted payback on simpler inflow shapes, use the payback period calculator .

Google Sheets & Excel

English function names; MIRR expects decimals for the last two arguments while your cash row stays in currency units.

MIRR (same row as IRR, plus two rates)

**`=MIRR(B1:H1, finance_rate, reinvest_rate)`** — e.g. **`=MIRR(B1:H1, B10, B11)`** if **B10**/**B11** hold **0.10** and **0.12** for **10%** and **12%**.

Finance and reinvest arguments are decimals per period, not percent-formatted cells, unless you divide by 100 inside the formula.

Plain periodic IRR (one rate)

**`=IRR(B1:H1)`** or **`=IRR(B1:H1,0.1)`** when you **do not** need separate finance/reinvest assumptions.

Use the IRR calculator on this site for the NPV = 0 story without MIRR’s two extra rates.

Frequently asked questions

What is modified internal rate of return (MIRR)?

MIRR is a single periodic return that assumes negative cash flows are financed at a finance rate and positive flows are reinvested at a reinvest rate, then summarizes the path in one rate—Excel/Sheets MIRR.

What is the difference between finance and reinvestment rates?

Finance prices money going out (negative lines) back toward today. Reinvestment grows money coming in (positive lines) forward to the project end. Same number in both boxes is allowed when your model intentionally uses one hurdle for both stories.

How is MIRR different from IRR?

IRR finds one rate that zeros NPV while implicitly reinvesting at IRR itself between periods. MIRR stops that implicit loop by making reinvestment and financing explicit percents—often lower than IRR when IRR was optimistic.

Can I paste dates like XIRR?

No—this page is the equal annual ladder only. For dated amounts, use XIRR in Excel / Sheets and keep MIRR for regular spacing.

How do I match this in Google Sheets or Microsoft Excel?

Put the same cash row you use here (with negative time 0 if you type signs like the sheet), then =MIRR(range, finance_rate, reinvest_rate) with decimals for the last two arguments. Google Sheets uses the same MIRR name.

Does MIRR fix multiple IRR problems?

MIRR usually delivers one real value because it separates negative and positive handling instead of hunting a single NPV=0 root on a wiggly path—but you still need sensible rates and clean sign data.

Can finance and reinvestment be the same percent?

Yes—set both boxes to the same annual % when your policy uses one hurdle for both sides. The math still follows MIRR with identical second and third arguments.

Can a rate be negative?

Slightly—each rate must stay strictly above −100% so 1 + r stays positive (same guard as the solver family). Deep negative financing is rare in teaching examples; check your inputs.

Does this return a monthly MIRR?

No—values are one row per year. A monthly MIRR in Excel returns a rate per month; annualize with (1+r_m)^12−1 only when your model is truly monthly-native.

When should I use the IRR calculator instead?

Use IRR when you only need NPV = 0 at one periodic rate and do not want separate finance/reinvest assumptions. Use MIRR when your policy or coursework requires those two rates explicitly.

Is this the TVM calculator?

No. TVM solves annuity identities (PV, FV, PMT, rate, N). MIRR is for a free-form cash vector at equal steps with two side rates—different tool.

Is this investment, tax, or business advice?

No. It is a free educational calculator—not a fiduciary recommendation, not a filing, and not a substitute for qualified professionals when decisions have money on the line.

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