This article describes the formula syntax and usage of the MIRR function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.
Description
Returns the modified internal rate of return for a series of periodic cash flows. MIRR considers both the cost of the investment and the interest received on reinvestment of cash.
Syntax
MIRR(values, finance_rate, reinvest_rate)
The MIRR function syntax has the following arguments (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):
 Values Required. An array or a reference to cells that contain numbers. These numbers represent a series of payments (negative values) and income (positive values) occurring at regular periods.
 Values must contain at least one positive value and one negative value to calculate the modified internal rate of return. Otherwise, MIRR returns the #DIV/0! error value.
 If an array or reference argument contains text, logical values, or empty cells, those values are ignored; however, cells with the value zero are included.
 Finance_rate Required. The interest rate you pay on the money used in the cash flows.
 Reinvest_rate Required. The interest rate you receive on the cash flows as you reinvest them.
Remarks
 MIRR uses the order of values to interpret the order of cash flows. Be sure to enter your payment and income values in the sequence you want and with the correct signs (positive values for cash received, negative values for cash paid).
 If n is the number of cash flows in values, frate is the finance_rate, and rrate is the reinvest_rate, then the formula for MIRR is:
Example
The example may be easier to understand if you copy it to a blank worksheet.
How do I copy an example?
 Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
Important: Do not select the row or column headers.
Selecting an example from Help
 Press CTRL+C.
 Create a blank workbook or worksheet.
 In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
 To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.
After you copy the example to a blank worksheet, you can adapt it to suit your needs.

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Data 
Description 
$120,000 
Initial cost 
39,000 
Return first year 
30,000 
Return second year 
21,000 
Return third year 
37,000 
Return fourth year 
46,000 
Return fifth year 
10.00% 
Annual interest rate for the 120,000 loan 
12.00% 
Annual interest rate for the reinvested profits 
Formula 
Description (Result) 
=MIRR(A2:A7, A8, A9) 
Investment's modified rate of return after five years (13%) 
=MIRR(A2:A5, A8, A9) 
Modified rate of return after three years (5%) 
=MIRR(A2:A7, A8, 14%) 
Fiveyear modified rate of return based on a reinvest_rate of 14 percent (13%) 
