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# mirr

Modified internal rate of return

## Syntax

```Return = mirr(CashFlow, FinRate, Reinvest)
```

## Arguments

 CashFlow Vector of cash flows. The first entry is the initial investment. FinRate Finance rate for negative cash flow values. Enter as a decimal fraction. Reinvest Reinvestment rate for positive cash flow values, as a decimal fraction.

## Description

Return = mirr(CashFlow, FinRate, Reinvest) calculates the modified internal rate of return for a series of periodic cash flows. This function calculates only positive rates of return; for nonpositive rates of return, Return = 0.

## Examples

This cash flow represents the yearly income from an initial investment of \$100,000. The finance rate is 9% and the reinvestment rate is 12%.

 Year 1 \$20,000 Year 2 (\$10,000) Year 3 \$30,000 Year 4 \$38,000 Year 5 \$50,000

To calculate the modified internal rate of return on the investment

```Return = mirr([-100000 20000 -10000 30000 38000 50000], 0.09,...
0.12)
```

returns

```Return =
0.0832 (8.32%)
```

## References

Brealey and Myers, Principles of Corporate Finance, Chapter 5

## See Also

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