This article describes the formula syntax and usage of the MIRR function in Microsoft Excel.
Description
Returns the modified internal rate of return for a series of periodic cash flows. MIRR considers both the cost of the investment and the interest received on reinvestment of cash.
Syntax
MIRR(values, finance_rate, reinvest_rate)
The MIRR function syntax has the following arguments:

Values Required. An array or a reference to cells that contain numbers. These numbers represent a series of payments (negative values) and income (positive values) occurring at regular periods.

Values must contain at least one positive value and one negative value to calculate the modified internal rate of return. Otherwise, MIRR returns the #DIV/0! error value.

If an array or reference argument contains text, logical values, or empty cells, those values are ignored; however, cells with the value zero are included.


Finance_rate Required. The interest rate you pay on the money used in the cash flows.

Reinvest_rate Required. The interest rate you receive on the cash flows as you reinvest them.
Remarks

MIRR uses the order of values to interpret the order of cash flows. Be sure to enter your payment and income values in the sequence you want and with the correct signs (positive values for cash received, negative values for cash paid).

If n is the number of cash flows in values, frate is the finance_rate, and rrate is the reinvest_rate, then the formula for MIRR is:
Example
Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.
Data 
Description 

120000 
Initial cost 

39000 
Return first year 

30000 
Return second year 

21000 
Return third year 

37000 
Return fourth year 

46000 
Return fifth year 

0.1 
Annual interest rate for the 120,000 loan 

0.12 
Annual interest rate for the reinvested profits 

Formula 
Description 
Result 
=MIRR(A2:A7, A8, A9) 
Investment's modified rate of return after five years 
13% 
=MIRR(A2:A5, A8, A9) 
Modified rate of return after three years 
5% 
=MIRR(A2:A7, A8, 14%) 
Fiveyear modified rate of return based on a reinvest_rate of 14 percent 
13% 