mirr (Financial Toolbox)

mirr	Examples See Also

Modified internal rate of return.

Syntax

r = mirr(cf, srate, rrate)

Arguments

cf: Vector of cash flows. The first entry in cf is the initial investment.

srate: Finance rate for negative cash flow values. Enter as decimal fraction.

rrate: Reinvestment rate for positive cash flow values, as a decimal fraction.

Description

r = mirr(cf, srate, rrate)

calculates the modified internal rate of return for a series of periodic cash flows. This function calculates only positive rates of return; for negative rates of return, r = 0.

Example

This cash flow represents the yearly income from an initial investment of $100,000. The finance rate is 9% and the reinvestment rate is 12%.


Year 1	$20,000
Year 2	($10,000)
Year 3	$30,000
Year 4	$38,000
Year 5	$50,000

To calculate the modified internal rate of return on the investment:

r = mirr([-100000 20000 -10000 30000 38000 50000], 0.09, 0.12)

returns

r =
    0.0832 (8.32%)