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Modified Return for Nine Cash-Flow Periods

Calculate a periodic modified internal rate of return using separate finance and reinvestment assumptions.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

A 1,000 initial investment cost and receipt of 1,210 after two equal periods give a periodic modified return of 10% when intervening flows are zero.

MIRR = (terminal value of positive flows / present cost of negative flows)^(1/n) −1. Initial investment is a positive cost; later receipts are positive and later costs negative.

Worked example

Enter these known values and leave the other values blank.

Initial investment
1000 USD
Year 2
1210 USD
MIRR
10 %

Assumptions and limitations

  • Period zero is entered as a positive investment cost. Later periods use signed cash flows; financing discounts negative flows and reinvestment compounds positive flows.
  • The horizon ends at the last nonzero period, with a minimum one-period horizon. Trailing zeros are excluded; all intervals have equal length.
  • Use one currency throughout. Retained currency selector factors are a historical snapshot, not live exchange rates.
  • Clear an editable unknown before solving an inverse. Selection controls and forced outputs cannot be inferred.

Common questions

What does this model assume?

Period zero is entered as a positive investment cost. Later periods use signed cash flows; financing discounts negative flows and reinvestment compounds positive flows.

Can I use the currency menu as a current quote?

No. Keep amounts in one currency; conversion factors are a captured historical snapshot.

References

The calculation follows this reviewed mathematical model: MIRR = (terminal value of positive flows / present cost of negative flows)^(1/n) −1. Initial investment is a positive cost; later receipts are positive and later costs negative. Required model inputs: Initial investment cost must be positive. Financing return must exceed minus 100 percent. Reinvestment return must exceed minus 100 percent.

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