MIRR Function

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This page is specific to the Visual Basic for Applications (VBA) Language Reference for Office 2010.

Returns a Double specifying the modified internal rate of return for a series of periodic cash flows (payments and receipts).

Syntax

MIRR(values(), finance_rate, reinvest_rate)

The MIRR function has these named arguments:

Part

Description

values()

Required. Array of Double specifying cash flow values. The array must contain at least one negative value (a payment) and one positive value (a receipt).

finance_rate

Required. Double specifying interest rate paid as the cost of financing.

reinvest_rate

Required. Double specifying interest rate received on gains from cash reinvestment.

Remarks

The modified internal rate of return is the internal rate of return when payments and receipts are financed at different rates. The MIRR function takes into account both the cost of the investment (finance_rate) and the interest rate received on reinvestment of cash (reinvest_rate).

The finance_rate and reinvest_rate arguments are percentages expressed as decimal values. For example, 12 percent is expressed as 0.12.

The MIRR function uses the order of values within the array to interpret the order of payments and receipts. Be sure to enter your payment and receipt values in the correct sequence.

Example

This example uses the MIRR function to return the modified internal rate of return for a series of cash flows contained in the array Values(). LoanAPR represents the financing interest, and InvAPR represents the interest rate received on reinvestment.

Dim LoanAPR, InvAPR, Fmt, RetRate, Msg
Static Values(5) As Double    ' Set up array.
LoanAPR = .1    ' Loan rate.
InvAPR = .12    ' Reinvestment rate.
Fmt = "#0.00"    ' Define money format.
Values(0) = -70000    ' Business start-up costs.
' Positive cash flows reflecting income for four successive years.
Values(1) = 22000 : Values(2) = 25000
Values(3) = 28000 : Values(4) = 31000
RetRate = MIRR(Values(), LoanAPR, InvAPR)    ' Calculate internal rate.
Msg = "The modified internal rate of return for these five cash flows is"
Msg = Msg & Format(Abs(RetRate) * 100, Fmt) & "%."
MsgBox Msg    ' Display internal return 
        ' rate.