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MIRR
MIRR computes a modified IRR that corrects for two key MIRR assumptions: it discounts negative cash flows at a finance rate and compounds positive ones at a reinvestment rate. Use it when borrowing and reinvestment rates differ materially from each other to get a more realistic project return.
Excel
=MIRR(B2:B6,0.08,0.1)Google Sheets
=MIRR(B2:B6,0.08,0.1)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Year | Cash Flow |
| 0 | -50000 |
| 1 | 15000 |
| 2 | 20000 |
| 3 | 25000 |
| 4 | 18000 |
=MIRR(B2:B6,0.08,0.1)→0.1572128223
Try it with your data
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How it works
- 1List all cash flows in a column, beginning with the initial investment as a negative number.
- 2Determine your finance_rate (cost of borrowing) and reinvest_rate (expected return on reinvested cash).
- 3Enter =MIRR(values, finance_rate, reinvest_rate) and the result is the annualised modified return.
Need a version for your data?
Try: “What is the modified IRR of my project if I borrow at 8% and reinvest at 10%?”