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MIRR Calculator
Calculate the Modified Internal Rate of Return (MIRR) for a 4-year cash flow series, using an explicit reinvestment rate instead of IRR's assumption that cash flows reinvest at the project's own return.
How to Use MIRR Calculator
- 1Enter the initial investment
- 2Enter the 4 yearly cashflows
- 3Enter your reinvestment rate for interim cashflows
- 4Click Calculate to see the future value of cashflows and the MIRR
Frequently Asked Questions
IRR solves for the single rate at which NPV = 0 (via search), implicitly assuming interim positive cashflows are reinvested at that same IRR — often unrealistic. MIRR instead lets you specify a separate, more realistic reinvestment rate for those cashflows, then computes a single modified return from that assumption.
Exactly 4 fixed yearly cashflow fields plus the initial investment — the same 4-cashflow structure as the IRR Calculator, for direct comparison between the two methods on the same numbers.
No — this simplified version assumes only the initial investment is an outflow and all 4 yearly cashflows are positive inflows. If your project has additional cash outflows in later years, this formula would need to be extended (discount those outflows to time 0 using a finance rate) — not currently supported here.
Because IRR's reinvestment-at-IRR assumption can make high-IRR projects look artificially more attractive. MIRR's explicit, realistic reinvestment rate avoids this distortion, especially when comparing projects with very different IRRs.
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