MIRR function

MIRR (Values, FinanceRate, ReinvestRate) MIRR (Values; FinanceRate; ReinvestRate)

Values

An array containing the payments made or received, at regular intervals.

FinanceRate

Number Number

The rate of interest you pay per period on outstanding balances.

ReinvestRate

Number Number

The rate of interest you receive per period on invested balances.

Returns

Number Number

The modified internal rate of return of a series of cash flows.

Returns the modified internal rate of return (MIRR) of a series of equally spaced cash flows. Unlike IRR, MIRR accounts for separate finance and reinvestment rates, which often makes it a more realistic measure of an investment's profitability.

Example

MIRR ({ - 8000, 2500, 3500, 4000 }, 6 % , 10 % )

MIRR ({ - 8000; 2500; 3500; 4000 }; 6 % ; 10 % )

Returns roughly 10.78%. Suppose you invest $8,000 today and receive $2,500 after one year, $3,500 after two years and $4,000 after three years. Borrowing costs 6% and positive cash flows are reinvested at 10%. Under these assumptions, the modified internal rate of return is roughly 10.78%.