Documentation/How Tos/Calc: MIRR function

MIRR

Returns the modified internal rate of return of a series of cash flows.

Syntax:

MIRR(payments; financerate; reinvestrate)

payment is a range containing the payments made or received, at regular intervals.

financerate is the rate of interest you pay per period on outstanding balances.

reinvestrate is the rate of interest you receive per period on invested balances.

At least one of the payments must be negative and at least one positive. The payments are assumed to arise at the start of each period; the order in which the payments are given is important.

MIRR finds the modified internal rate of return from the formula:

(1 + MIRR)^n-1 = final_value_of_positive_payments/initial_value_of_negative_payments.

Example:

MIRR(A1:A4; 5%; 8%)

where A1:A4 contain -5000, 1000, 2000, 3000, returns approximately 8.16%.

See also:

IRR, NPV, XIRR, XNPV

Financial functions

Issues:

• This function does not currently accept arrays.