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MIRR Function

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

Function MIRR( _
   ByRef ValueArray() As Double, _
   ByVal FinanceRate As Double, _
   ByVal ReinvestRate As Double _
) As Double


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).
Required. Double specifying interest rate paid as the cost of financing.
Required. Double specifying interest rate received on gains from cash reinvestment.


Exception type Error number Condition
ArgumentException 5 Rank of ValueArray does not equal 1.
ArgumentException 5 FinanceRate = -1
ArgumentException 5 ReinvestRate = -1
DivideByZeroException 11 Division by zero has occurred.


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 (FinanceRate) and the interest rate received on reinvestment of cash (ReinvestRate).

The FinanceRate and ReinvestRatearguments 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.


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.

Sub TestMIRR()
   Dim LoanAPR, InvAPR, RetRate, Values(4) As Double
   Dim Msg, Fmt As String
   LoanAPR = 0.1  ' Loan rate.
   InvAPR = 0.12  ' 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(Math.Abs(RetRate) * 100, CStr(Fmt)) & "%."
   MsgBox(Msg)    ' Display internal return rate.
End Sub


Namespace: Microsoft.VisualBasic

Module: Financial

Assembly: Microsoft Visual Basic .NET Runtime (in Microsoft.VisualBasic.dll)

See Also

DDB Function | FV Function | IPmt Function | IRR Function | NPer Function | NPV Function | Pmt Function | PPmt Function | PV Function | Rate Function | SLN Function | SYD Function | ArgumentException Class | DivideByZeroException Class

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