How this calculator works
Negative cash flows are discounted to time zero at the financing rate, including the initial outlay. Positive flows grow to the final period at the reinvestment rate. MIRR links those two totals over the full horizon. The entered rates are effective annual rates and are converted consistently for the chosen frequency. Unlike the restricted IRR tool, later outflows are supported.
Formula
MIRR_period = (FV_positive/PV_negative)^(1/n) - 1. PV_negative discounts outflows at the financing rate; FV_positive compounds receipts at the reinvestment rate.
Worked example
An initial $100 followed by $60 and $72 with 20% reinvestment produces terminal inflows of $144 and a two-year MIRR of 20%. With an initial $100, flows $50 and $75 and zero reinvestment, MIRR is 11.803399%.
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Frequently asked questions
Why use two rates?
Funding costs and reinvestment opportunities need not equal each other or the project's calculated IRR.
Can later cash flows be negative?
Yes. They add to the financed present-value outflow total rather than creating extra IRR roots.
Does MIRR remove forecast uncertainty?
No. It remains sensitive to projected cash flows, financing costs and the reinvestment assumption.