MIRR Calculator — Modified IRR

Written by Great Medico

Updated September 25, 2026 •3 min read

Share Print Save

MIRR Calculator — Modified IRR is most useful when you want to see exactly how the entered assumptions drive the result. Changing one form value at a time makes the effect easier to follow.

What this calculator does

MIRR Calculator — Modified IRR estimates modified internal rate of return when negative cash flows are financed at one rate and positive cash flows are reinvested at another. It works from financing rate, reinvestment rate, initial investment, and the annual cash-flow fields you need. For MIRR Calculator — Modified IRR, the calculator does not pull live quotes or analyst estimates, which keeps the scenario reproducible with the numbers you supply.

How to use it

Start with Financing rate, Reinvestment rate, Initial investment, and the annual cash-flow fields you need. For MIRR Calculator — Modified IRR, enter percentage or rate fields on the scale displayed by the form rather than converting them to an unstated format. Use one currency for all monetary fields in MIRR Calculator — Modified IRR; the currency selector formats the result and does not convert exchange rates. Enter annual cash flows in chronological order and leave later years unused when they are not part of the scenario.

How the calculation works

The calculator discounts negative cash flows back at the financing rate, compounds positive cash flows forward at the reinvestment rate, and then solves MIRR = (FV of positive flows ÷ −PV of negative flows)^(1/n) − 1. MIRR Calculator — Modified IRR substitutes the relevant form values into this equation without adding an unstated market assumption. For MIRR Calculator — Modified IRR, an unusual result is a reason to verify the entered values and the formula shown here before drawing a conclusion.

Example

Suppose $10,000 is invested initially, later cash flows are $3,000, $4,000, $5,000, and the finance and reinvestment rates are 6% and 5%. The calculator converts the negative and positive flows to common endpoints before solving one annualized MIRR. Use the same MIRR Calculator — Modified IRR steps with your own form values rather than treating the sample as a target.

How to interpret the result

MIRR can be easier to interpret than ordinary IRR when a project has interim cash flows because it separates the financing assumption from the reinvestment assumption. Compare projects only when cash-flow timing and rates are defined consistently. Read the MIRR Calculator — Modified IRR output as the specific relationship calculated from the form, not as a complete investment or credit decision by itself.

Limitations and notes

MIRR is still a model-based annualized return. Results are highly sensitive to entered cash flows and the chosen finance and reinvestment rates, and the calculator does not add taxes, financing fees, project risk, or terminal values unless those amounts are entered as cash flows. If you revisit MIRR Calculator — Modified IRR later, refresh the displayed inputs instead of carrying an old result forward.