Investment Studio > Expressions > Functions > Financial > MIRR

float mirr(float array cash_flows, float financing_interest_rate, float reinvestment_interest_rate)

Returns the MIRR (Modified Internal Rate of Return) for a series of cash flows occurring at regular intervals (e.g. monthly or annually). The MIRR improves on the IRR by also considering interest costs for loans and interest income from reinvested profits.

	cash_flows contains the regular cash flows. Positive values represent inflows, negative values represent outflows. Cash flows must be listed in their order of occurrence. All elements in cash_flows are converted to floats (with exclusion if conversion fails) and interpreted as a single, one-dimensional sequence. If the data array is two-dimensional, it's read in the usual order (i.e. row by row: left to right, top to bottom). Computation of the MIRR requires at least one positive value (inflow) and one negative value (outflow) to be listed.
	financing_interest_rate is the interest rate (per payment period) charged for loans.
	reinvestment_interest_rate is the interest rate (per payment period) received on reinvested income.

Example

You borrow USD 10 000 at 8% annual rate to start a new business with annual returns of USD 2000, 5000, 7000, 8000 and 8500 during the first five years. You reinvest the returns at a 5% annual rate.

After the first four years, your investment's MIRR is

=mirr({-10000, 2000, 5000, 7000, 8000}, 8%, 5%)

» 23.4%. After five years, it's

=mirr({-10000, 2000, 5000, 7000, 8000, 8500}, 8%, 5%)

» 26.8%.

See also irr, npv, rate, xirr, xnpv.