Modified Internal rate of return Formula

MIRR = Modified internal rate of return

n = No. of periods or years or Total life span of the project or investment

t = Period in which cash flow occur  

Cash inflow= The amount of return on investment

Cash outflow = The amount of investment


The Modified Internal Rate of Return (MIRR) is a financial measure of an investment's attractiveness. It is used in capital budgeting to rank alternative investments of equal size. As the name implies, MIRR is a modification of the internal rate of return (IRR) and as such aims to resolve some problems with the IRR.