MIRR Calculator - Modified Internal Rate of Return

Name: MIRR Calculator - Modified Internal Rate of Return
Author: Laxman Kumawat

Calculate modified IRR using separate finance and reinvestment rates.

Last Updated: May 2026

Cash Flow

Inputs

Cash flows

Finance rate

Reinvestment rate

MIRR

9.60%

PV of Outflows

$10,000.00

FV of Inflows

$14,428.48

Periods

Calculation Details

Item	Value
Finance rate	6.00%
Reinvestment rate	8.00%

Investment Planning Notice

Results support education and scenario analysis. They do not provide personalized investment, tax, accounting, or legal advice.

Reviewed For Methodology, Labels, And Sources

Every CalculatorWallah calculator is published with visible update labeling, linked source references, and review of formula clarity on trust-sensitive topics. Use results as planning support, then verify institution-, policy-, or jurisdiction-specific rules where they apply.

Reviewed By

Laxman Kumawat, Finance & Engineering Calculator Owner, reviews methodology, labels, assumptions, and trust-sensitive publishing decisions for this topic area.

Review editor profile

Topic Ownership

Financial calculators, Engineering calculators, Electrical and HVAC planning calculators, Investment, salary, loan, and technical design-estimate workflows

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Methodology & Updates

Page updated May 2026. Finance and engineering calculators are reviewed when formulas, rate assumptions, or technical references change, and during broader category refreshes.

Sources & methodology About the review process

How to Use the MIRR Calculator - Modified Internal Rate of Return

Step 1: Set Cash flows
Start with cash flows such as -10000, 2500, 3000, 3500, 4000 so the mirr calculation has the correct base.
Step 2: Complete the scenario inputs
Add finance rate, and reinvestment rate using the same period and quote convention as your source data.
Step 3: Review MIRR
Read the mirr result first, then check the supporting values to confirm the formula used the expected inputs.
Step 4: Compare against a benchmark
Compare the result with a required hurdle rate, cost of capital, acquisition price, or the NPV from a competing project.

How This MIRR Calculator - Modified Internal Rate of Return Works

MIRR Calculator - Modified Internal Rate of Return applies (FV positive cash flows / PV negative cash flows)^(1 / n) - 1 to the values entered in the form. Percentage inputs are converted to decimals during calculation, while currency, count, and list inputs keep their displayed units.

Cash-flow metrics depend heavily on sign convention, payment timing, discount rate selection, and whether cash flows are evenly spaced. The result should be read with the example inputs and formula reference below so the metric is tied to the exact scenario being modeled.

What You Need to Know

Worked Example Setup

The default setup follows the page scenario: Calculate modified IRR using separate finance and reinvestment rates. Start with these values to check the formula, then replace each input with your own source data.

Input	Example value	How to treat it
Cash flows	-10000, 2500, 3000, 3500, 4000	Use the cash flows from the same scenario as the other inputs.
Finance rate	6%	Use the finance rate from the same scenario as the other inputs.
Reinvestment rate	8%	Use the reinvestment rate from the same scenario as the other inputs.

Formula Reference

Metric	Formula	Use
MIRR	(FV positive cash flows / PV negative cash flows)^(1 / n) - 1	Modified return estimate

Formula Terms Explained

The formula is only useful when each term comes from the same scenario. The table below maps the fields in the calculator to the values used in the worked example.

Formula term	Example value	How the calculator uses it
Cash flows	-10000, 2500, 3000, 3500, 4000	Parsed as an ordered list so each value keeps its position in the calculation.
Finance rate	6%	Converted from a percentage to a decimal before the formula is applied.
Reinvestment rate	8%	Converted from a percentage to a decimal before the formula is applied.

Worked Example Walkthrough

Step	Example detail
1. Start with the example inputs	Cash flows: -10000, 2500, 3000, 3500, 4000; Finance rate: 6%; Reinvestment rate: 8%
2. Normalize the inputs	Finance rate 6%; Reinvestment rate 8% are treated as percentages and converted to decimals.
3. Preserve list order	Cash flows: -10000, 2500, 3000, 3500, 4000 are read in order from first period to last period.
4. Apply the formula	MIRR = (FV positive cash flows / PV negative cash flows)^(1 / n) - 1
5. Interpret the output	Read the mirr result with the supporting rows from the calculator widget before comparing it with a benchmark.

When to Use MIRR Calculator - Modified Internal Rate of Return

Use case	How it helps
Project screening	Test whether expected cash flows justify the upfront investment.
Valuation review	Discount future payments into present value terms.
Return comparison	Compare IRR or MIRR against a required hurdle rate.

Interpreting MIRR

The output values a stream of payments by accounting for timing, discount rates, reinvestment assumptions, or terminal value.

A positive valuation or high return is strongest when the discount rate reflects risk and the cash-flow forecast is defensible.

Compare the result with a required hurdle rate, cost of capital, acquisition price, or the NPV from a competing project. Cash-flow models can look precise even when the forecast or terminal value assumption is fragile.

Common Mistakes

Mistake	Why it matters
Flipping signs	Initial outflows should be negative when future inflows are positive.
Weak discount rate	The discount rate should reflect risk, time, and opportunity cost.
Terminal value overreach	A large terminal value can dominate the estimate.

Before You Use the Result

Review point	What to confirm
Same-period inputs	MIRR is easier to trust when every input uses the same time period, currency, and quote convention.
Benchmark selected	Compare the result with a required hurdle rate, cost of capital, acquisition price, or the NPV from a competing project.
Risk and cost review	Check taxes, fees, liquidity, downside risk, and data quality before treating the output as an investment decision.
Known limitation	Cash-flow models can look precise even when the forecast or terminal value assumption is fragile.

Keep the research moving with NPV Calculator – Net Present Value, Internal Rate of Return (IRR) Calculator, Discounted Cash Flow Calculator (DCF), and Present Value / Future Value Calculator.

Frequently Asked Questions

MIRR uses (FV positive cash flows / PV negative cash flows)^(1 / n) - 1. Cash-flow metrics depend heavily on sign convention, payment timing, discount rate selection, and whether cash flows are evenly spaced.

MIRR Calculator - Modified Internal Rate of Return uses cash flows, finance rate, and reinvestment rate. Keep those inputs on the same time basis and quote convention before reading the result.

The output values a stream of payments by accounting for timing, discount rates, reinvestment assumptions, or terminal value. A positive valuation or high return is strongest when the discount rate reflects risk and the cash-flow forecast is defensible.

Treat the output as decision support. Real investment choices should also account for taxes, liquidity, risk, timing, fees, and professional advice where appropriate.

Compare the result with a required hurdle rate, cost of capital, acquisition price, or the NPV from a competing project.

Cash-flow models can look precise even when the forecast or terminal value assumption is fragile.