Excel MIRR Function

This post will guide you how to use Excel MIRR function with syntax and examples in Microsoft excel.

Description

The Excel MIRR function returns the modified internal rate of return for a series of cash flows and the cash flows must be occurred at regular intervals (monthly or annually). MIRR considers both the cost of the investment and the interest received on reinvestment of cash.

The internal rate of return is the interest rate received for an investment consisting of payments (negative values) and income (positive values) that occur at regular periods.

The MIRR function is a build-in function in Microsoft Excel and it is categorized as a Financial Function.

The MIRR function is available in Excel 2016, Excel 2013, Excel 2010, Excel 2007, Excel 2011 for Mac.

Syntax

The syntax of the MIRR function is as below:

=MIRR(values, finance_rate,reinvest_rate)

Where the MIRR function arguments are:

  • Values -This is a required argument. An array or cell reference that contain numbers for which you want to calculate the internal rate of return. And the values must include at least one positive value and one negative value.
  • finance_rate -This is a required argument. The interest rate that you pay on the cash flow amounts.
  • reinvest_rate -This is a required argument. The interest rate paid on the reinvested cash flows.

Excel MIRR Function Examples

The below examples will show you how to use Excel MIRR Function to calculate the modified internal rate of return for a series of cash flows.

#1 to get the modified rate of return after 3 years, using the following formula:

= MIRR (B1:B4)

excel mirr examples1


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