What this calculator does
Modified internal rate of return (MIRR) works out a more realistic IRR that uses separate finance and reinvestment rates. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
The inputs explained
| Field | What to enter |
|---|---|
| Initial investment (year 0 outflow) ($) | A number, measured in your currency. Starts at 100000. |
| Cash flows, year 1 onward (comma separated, negative = outflow) | A list of numbers, separated by commas or spaces. |
| Finance rate (cost of the capital used) (%) | A number, measured in %. Starts at 8. |
| Reinvestment rate (return on positive flows) (%) | A number, measured in %. Starts at 6. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with initial investment (year 0 outflow)
Every other input is held at the calculator’s starting values while initial investment (year 0 outflow) varies. Select any row to load that scenario into the calculator.