MS Excel: MIRR Function (WS, VBA)
In Microsoft Excel, the MIRR function returns the modified internal rate of return for a series of cash flows. The internal rate of return is calculated by using both the cost of the investment and the interest received by reinvesting the cash.
The cash flows must occur at regular intervals, but do not have to be the same amounts for each interval.
The syntax for the MIRR function is:
MIRR( range, finance_rate, reinvestment_rate )
range is a range of cells that represent the series of cash flows.
finance_rate is the interest rate that you pay on the cash flow amounts.
reinvestment_rate is the interest rate that you receive on the cash flow amounts as they are reinvested.
- Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000
Type of Function
- Worksheet function (WS)
- VBA function (VBA)
Worksheet Function Example
Let's take a look at an example to see how you would use the MIRR function in a worksheet:
Based on the Excel spreadsheet above:
This first example returns a modified internal rate of return of 19%. It assumes that you start a business at a cost of $7,500 - this amount was borrowed at a rate of 5%. You net the following income for the first four years: $3,000, $5,000, $1,200, and $4,000. The net income was reinvested at a rate of 8%.
=MIRR(A1:A5, 5%, 8%)
This next example returns a modified internal rate of return of 7%. It assumes that you start a business at a cost of $10,000 - this amount was borrowed at a rate of 6.5%. You net the following income for the first three years: $3,400, $6,500, and $1,000. The net income was reinvested at a rate of 10%.
=MIRR(B1:B4, 6.5%, 10%)
VBA Function Example
The MIRR function can also be used in VBA code. For example:
Dim LNumber As Double Static Values(5) As Double Values(0) = -7500 Values(1) = 3000 Values(2) = 5000 Values(3) = 1200 Values(4) = 4000 LNumber = Mirr(Values(), 0.05, 0.08)
In this example, the variable called LNumber would now contain the value of 0.16506818.