MIRR

Calculates the modified internal rate of return on an investment based on a series of periodic cash flows and the difference between the interest rate paid on financing versus the return received on reinvested income.

Sample Usage

Syntax

MIRR(cashflow_amounts, financing_rate, reinvestment_return_rate)

• cashflow_amounts - An array or range containing the income or payments associated with the investment.

  • cashflow_amounts must contain at least one negative and one positive cash flow to calculate rate of return.

• financing_rate - The interest rate paid on funds invested.

• reinvestment_return_rate - The return (as a percentage) earned on reinvestment of income received from the investment.

Notes

• Each cell in cashflow_amounts should be positive if it represents income from the perspective of the owner of the investment (e.g. coupons) or negative if it represents payments (e.g. loan repayment).

See Also

XNPV: Calculates the net present value of an investment based on a specified series of potentially irregularly spaced cash flows and a discount rate.

XIRR: Calculates the internal rate of return of an investment based on a specified series of potentially irregularly spaced cash flows.

PV: Calculates the present value of an annuity investment based on constant-amount periodic payments and a constant interest rate.

NPV: Calculates the net present value of an investment based on a series of periodic cash flows and a discount rate.

IRR: Calculates the internal rate of return on an investment based on a series of periodic cash flows.

In order to use the MIRR formula, start with your edited Excellentable: