MIRR

Using the Excel MIRR Function

Summary

The MIRR function is one of Excel's financial functions and returns the modified internal rate of return for a series of periodic cash flows. MIRR takes into consideration both the cost of the investment and interest that is received on reinvested gains.

MIRR is different from IRR in that the IRR function assumes all cash flows are reinvested at the same rate as the IRR. MIRR takes into consideration the discount rate and reinvestment rate.


Syntax

=MIRR (values, finance_rate, reinvest_rate)

Syntax Breakdown

Values
Required. An array or cell reference that contain numbers for which you want to find the MIRR. The values argument must contain at least one positive and one negative number, or else the function returns the #DIV/0! error.

Positive numbers represent income that occurs at regular intervals and negative values indicate a series of payments.

Be sure to enter the payment and income values in chronological order.

The function ignores text and logical values and empty cells.

Finance Rate
Required. Interest rate paid on the money used in the cash flows.

Reinvest Rate
Required. The rate received on reinvested cash flows.


Usage Notes

MIRR returns the modified internal rate of return for a series of cash flows occurring at regular periods while considering the discount rate and reinvestment rate.