To use the MIRR Calculator, input your initial investment, finance rate, and reinvestment rate. Select the number of cash flows and enter each cash flow amount. The calculator will compute the MIRR, terminal value, and present value of costs.
The MIRR is calculated using the formula: MIRR = (Terminal Value / Present Value of Costs)^(1/n) - 1, where n is the number of periods.
Suppose you invest $10,000 with a finance rate of 5% and a reinvestment rate of 7%. You expect cash flows of $2,000, $3,000, and $4,000 over three years. The MIRR will be calculated based on these inputs.
While MIRR provides a more comprehensive view than IRR, it still relies on assumptions about reinvestment rates. Always consider the broader economic context and other financial metrics. For more detailed analysis, explore our Investment Calculator and ROI Calculator.