Returns the modified internal rate of return for a series of periodic cash flows.
Syntax:
MIRR(values:array, finance_rate:number, reinvest_rate:number)
values | an array or a range of cells which contain numbers representing payments (negative numbers) and receipts (positive numbers) occurring at regular periods. |
finance_rate | the interest rate you pay |
reinvest_rate | the interest rate you receive on reinvested cash. |
MIRR
considers both the cost of the investment and the interest received on reinvestment of the cash.
Example:
If you borrowed £120,000 to set up a business, and reinvested income of £39,000, £30,000, and £21,000, you should enter these figures in four cells (say B1
to B4
). Interest paid was 10% and interest received 12%. The formula would be:
MIRR(B1:B4, 0.10, 0.12)
and the rate of return calculated would be 0.04804
.