MIRR Calculator

Calculate Modified Internal Rate of Return (MIRR) for investment projects. Analyze cash flows with different financing and reinvestment rates for more accurate investment evaluation.

✓ Investment Analysis ✓ Cash Flow Evaluation ✓ Risk Assessment

MIRR Calculator

Cash Flows

Enter your cash flows by period (negative for outflows, positive for inflows)

Rate Parameters

Cost of capital for negative cash flows

Return rate for positive cash flows

Analysis Options

MIRR Formula

Modified Internal Rate of Return

MIRR Formula:

MIRR = (FV of positive flows / PV of negative flows)^(1/n) - 1
Where: FV = Future Value, PV = Present Value, n = number of periods

Project Examples

Conservative Project
Steady returns, low risk
Growth Project
Increasing cash flows
High-Risk Project
Variable returns

MIRR vs IRR

MIRR: More realistic assumptions
IRR: Single discount rate
MIRR: Eliminates multiple IRR problem
Better: MIRR for decision making

Decision Criteria

✅ Accept: MIRR > Cost of Capital
❌ Reject: MIRR < Cost of Capital
📊 Compare: Higher MIRR is better
⚖️ Consider: Risk and other factors
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Understanding MIRR

Modified Internal Rate of Return (MIRR) is an improved version of IRR that addresses its limitations by using different rates for financing and reinvestment of cash flows.

  • Realistic Assumptions: Uses market rates for financing and reinvestment
  • Single Solution: Eliminates multiple IRR problems
  • Better Comparison: More accurate for project ranking
  • Conservative Approach: More realistic return expectations

MIRR Applications

Capital Budgeting

Evaluate and rank investment projects more accurately.

Real Estate

Analyze property investments with realistic financing costs.

Business Valuation

Value businesses with varying cash flow patterns.

Portfolio Management

Compare investment alternatives with different risk profiles.