MIRR Calculator

Use our free MIRR (Modified Internal Rate of Return) calculator to get a more accurate measure of investment profitability. Unlike IRR, MIRR assumes positive cash flows are reinvested at the reinvestment rate and negative cash flows are financed at the finance rate.

Financial

Currency

Initial Investment

Year 1 Cash Flow

Year 2 Cash Flow

Year 3 Cash Flow

Year 4 Cash Flow

Year 5 Cash Flow

Finance Rate (%)

Reinvestment Rate (%)

Formula

The Modified Internal Rate of Return (MIRR) addresses key limitations of IRR by assuming positive cash flows are reinvested at the reinvestment rate and negative cash flows are financed at the finance rate. This gives a more realistic measure of project profitability.

MIRR = (FV of Inflows at Reinvest Rate / PV of Outflows at Finance Rate)^(1/n) - 1

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the initial investment and projected cash flows.
2Enter the finance rate (cost of capital for outflows).
3Enter the reinvestment rate for cash inflows.
4MIRR provides a more reliable return measure than IRR.

Examples

$50k investment, cash flows: $10k-$30k, 8% finance rate, 10% reinvest rate

1.PV of outflows at 8% = $50,000
2.FV of inflows at 10% = $10kÃ—1.1^4 + $15kÃ—1.1^3 + ...
3.MIRR = ($FV/PV)^(1/5) - 1 = 15.4%

Result: 15.42%

Frequently Asked Questions

IRR assumes all cash flows are reinvested at the IRR rate, which is often unrealistic. MIRR allows separate reinvestment and finance rates, giving a more accurate picture.

MIRR eliminates multiple IRR issues, provides a unique rate, and uses more realistic reinvestment assumptions. It is preferred for comparing projects of different sizes.

The finance rate should reflect the cost of capital, typically the company's WACC or the interest rate on debt used to fund the project.

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MIRR vs IRR

CalculateMe Team

Last updated: 2026-07-16

Frequently Asked Questions

IRR assumes all cash flows are reinvested at the IRR rate, which is often unrealistic. MIRR allows separate reinvestment and finance rates, giving a more accurate picture.

MIRR eliminates multiple IRR issues, provides a unique rate, and uses more realistic reinvestment assumptions. It is preferred for comparing projects of different sizes.

The finance rate should reflect the cost of capital, typically the company's WACC or the interest rate on debt used to fund the project.

MIRR Calculator

Formula

How It Works

Examples

$50k investment, cash flows: $10k-$30k, 8% finance rate, 10% reinvest rate

Frequently Asked Questions

How is MIRR different from IRR?

What are the advantages of MIRR over IRR?

What finance rate should I use?

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MIRR Calculator

Formula

How It Works

Examples

$50k investment, cash flows: $10k-$30k, 8% finance rate, 10% reinvest rate

Frequently Asked Questions

How is MIRR different from IRR?

What are the advantages of MIRR over IRR?

What finance rate should I use?

Related Calculators

Related Articles