MIRR (Modified IRR) Calculator
IRR with explicit reinvestment-rate assumption. Avoids the multiple-IRR problem.
Result
MIRR
14.7569%
Reinvest at 6%; finance at 8%.
- PV of negative flows$100,000.00
- FV of positive flows$199,018.40
- MIRR14.7569%
Step-by-step
- FV of positive cash flows at reinvestment rate: $199,018.40.
- PV of negative cash flows (incl. initial) at finance rate: $100,000.00.
- MIRR = (FV / PV)^(1/n) − 1 = (199,018/100,000)^(1/5) − 1 = 14.7569%.
How to use this calculator
- Enter initial investment, cash flows, finance rate, and reinvestment rate.
- Read MIRR.
About this calculator
MIRR addresses two flaws of standard IRR: (1) multiple-IRR for non-conventional flows, (2) the implicit-and-unrealistic assumption that intermediate cash flows are reinvested at IRR itself. MIRR uses two explicit rates: a finance rate for negative flows and a reinvestment rate for positive flows. Always single-valued, more conservative than IRR for typical projects.
Frequently asked
Because IRR effectively reinvests at IRR (often unrealistic). MIRR uses a more realistic (typically lower) reinvestment rate.
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