Modified Internal Rate of Return Calculator
Compute MIRR from the initial outlay, future value of inflows, and the number of years.
What this calculator does
The Modified Internal Rate of Return Calculator estimates your result instantly from the values you enter, using standard investing & wealth formulas. Compute MIRR from the initial outlay, future value of inflows, and the number of years. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
Result
About Modified Internal Rate of Return Calculator
The Modified Internal Rate of Return Calculator estimates the annualized return of a project from a single initial outlay and the total future value of its inflows. It divides the future value of the inflows by the outlay, takes the root corresponding to the number of years, and subtracts one.
MIRR improves on the ordinary internal rate of return by assuming reinvested cash flows are already rolled into a single terminal value, which avoids IRR's unrealistic reinvestment assumption and its multiple-solution problem. This tool uses the compact terminal-value form of MIRR, so you supply the ending value of the inflows directly rather than a year-by-year stream.
Enter the initial outlay, the future value of the inflows, and the number of years, press Calculate, and read the MIRR.
Formula & Mathematical Calculation
MIRR = ( Future Value of Inflows ÷ Initial Outlay )(1 ÷ Years) − 1
Calculation Example
An initial outlay of $100,000 that produces a future inflow value of $180,000 over 5 years has a MIRR of ($180,000 ÷ $100,000) raised to the one-fifth power and then reduced by one, giving 12.47%.
Key Benefits
- Annualizes a project's return from its outlay and terminal inflow value.
- Avoids the ordinary IRR's optimistic reinvestment assumption.
- Requires the outlay and the years to be greater than zero.
- Uses only the three figures you enter, with no year-by-year stream needed.
How to Use this Calculator
-
Enter the initial outlay
Type the upfront investment in the Initial Outlay field, for example 100000. -
Enter the future value of inflows
Type the total ending value of the reinvested inflows in the Future Value of Inflows field, for example 180000. -
Enter the number of years
Type the project length in years in the Number of Years field, for example 5. -
Press Calculate
The tool divides the future value by the outlay, takes the one-over-years root, and subtracts one to return the MIRR.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- Modified Internal Rate of Return Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.
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