MIRR Calculator - Modified Internal Rate of Return

Your details

The cost of capital or loan interest rate used to discount negative cash flows (outflows) back to today.
%
The rate at which positive cash flows (inflows) are assumed to be reinvested until the end of the project.
%
Enter a negative number for an outlay (e.g. -100000 for a $100,000 investment).
Currency
MIRRModerate return
14.01%

Modified Internal Rate of Return

Future value of inflows$192,612.00
Present value of outflows$100,000.00
Net terminal value$45,679.19
Number of periods5
14.01% %
Negative return<0%Below hurdle0%-8%Moderate8%-15%Strong return15%+

MIRR is 14.01% over 5 years.

  • The MIRR of 14.01% exceeds your financing rate of 8%, so the project creates value under these assumptions.
  • Inflows compounded at 10% reach $192,612 at the end of year 5, while discounted outflows are $100,000 in today's money.
  • Unlike traditional IRR, MIRR eliminates multiple-root ambiguity by using separate rates for financing and reinvestment, making it a more reliable decision metric.

Next stepCompare this MIRR against your company's hurdle rate. If MIRR exceeds the hurdle rate, the project is typically worth accepting.

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