AtlasCalcsUtility Calculation Suite
2026-09-23 6 min read

MIRR Calculator

Reinvestment-aware return with split rates.

Calculator

Initial Investment
$
Annual Cash Flow
$
Number of Periods
Finance Rate(%)
%
Reinvestment Rate(%)
%

Results

Optimal

MIRR

14.82%

Live results update as you type — currently showing mirr of 14.82%. Replace the defaults with your own numbers.

Visualizations

MIRR

-100,000$Initial
25,000$Annual CF

Formula

IRR with honest reinvestment.

MIRR = (FV+/PV−)^(1/n) − 1

Variables

SymbolNameUnitDescription
reReinvest%For inflows

Explanation

Reinvestment-aware yield.

Step-by-Step Calculation

Follow each step to understand how the result is calculated from your inputs.

Step 1

Compound inflows at reinvest rate, discount costs at finance rate

Result: 14.82%
Step 2

MIRR = (FV+/PV−)^(1/n) − 1

Result: 14.82%
Final Answer
14.82%

Worked Examples

See how the calculator works with different scenarios.

Scenario

The mirr calculator run on the values above.

Inputs

initialCost:100000
cashFlow:25000
periods:10
financeRate:8

Calculation

1. Compound inflows at reinvest rate, discount costs at finance rate → 14.82% 2. MIRR = (FV+/PV−)^(1/n) − 1 → 14.82%

Result

MIRR: 14.82%

Interpretation

MIRR 14.82% (fin 8.00%, reinvest 10.00%).

Understanding Your Result

Your Result: MIRR: 14.82%

What This Means

Reinvestment-aware yield.

Why It Matters

MIRR 14.82% (fin 8.00%, reinvest 10.00%).

Professional Interpretation

MIRR 14.82% (fin 8.00%, reinvest 10.00%).

How this is calculated

IRR with honest reinvestment.

What drives the result

Compounding grows lump sums and streams forward; discounting shrinks them back. The rate is the exchange rate between today and tomorrow.

Recommendations

  • •MIRR fixes IRR reinvestment flaw.
  • •Set reinvest to WACC for planning.

Educational Content

Introduction

Money has a time price: a dollar today compounds forward and discounts backward. Annuities package that into streams, NPV/IRR judge projects, and DCF prices whole firms.

Concept Explanation

Compounding grows lump sums and streams forward; discounting shrinks them back. The rate is the exchange rate between today and tomorrow.

Applications

▸Saving and loan decisions
▸Project screening with NPV/IRR
▸Firm valuation with DCF

Benefits

  • •Comparable across timing
  • •Rate-explicit decisions
  • •Value linked to cash, not accounting

Limitations

  • •Constant-rate simplifications
  • •Even-flow shortcuts where noted
  • •Forecasts dominate DCF truth

Best Practices

  • •Match rate frequency to cash frequency
  • •Show ranges for DCF/IRR
  • •Annualize before comparing

Common Misconceptions

Myth: Nominal equals effective
Truth: Compounding gaps them — use EAR.
Myth: IRR alone decides
Truth: Scale and timing need NPV beside it.

Practical Tips

  • •Set reinvest to WACC.

Common Mistakes

Default reinvest = IRR
Overstates.

Assumptions

This calculator makes the following assumptions to provide estimates:

Split rates: Finance vs reinvest.

Limitations

Be aware of these limitations when using this calculator:

Limitation: Constant-rate simplifications
Limitation: Even-flow shortcuts where noted
Limitation: Forecasts dominate DCF truth

Frequently Asked Questions

Answers to common questions about this calculator.

Why better?
Fixes IRR reinvest flaw.
How accurate is the mirr calculator?
It follows the stated TVM formula from your inputs. Match rate frequency to cash frequency for exact results.
Ordinary vs due?
Ordinary pays at period-end; due pays at start and is worth (1+r) more.
Nominal vs effective?
Nominal ignores compounding; effective (EAR) includes it — compare EAR.

Related Guides

Deepen your understanding with these educational resources.

Glossary

Technical terms used in mortgage calculations explained in plain language.

IRR
Discount rate that makes NPV zero.

Authoritative References

Trusted sources and standards referenced by this calculator.

Applicable Standards

End-of-period (ordinary) timing unless labeled dueMoney rounded for display only; math at full precisionEven annual flows where labeled; uneven timing needs period detail

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Page Information

Last Updated:

2026-09-23

Version:

2.0.0

License:

Free to use for educational and professional purposes.