# How do you calculate Mirr on a financial calculator?

Category:
personal finance
financial planning

You can

**calculate**the**MIRR**of an investment by**calculating**the future value of the investment's cash flows using the reinvestment rate, and then**calculating**the rate of return that grows the cost of the investment to the future value of the reinvested cash flows.

Likewise, what is the difference between IRR and MIRR?

**IRR** is the discount amount for investment that corresponds **between** initial capital outlay and the present value of predicted cash flows. **MIRR** is the price **in the** investment plan that equalizes the latest value of cash inflow to the first cash outflow. Project cash flows are reinvested at the cost of capital.

**Example: You invest $500 now, and get back $570 next year.**

**Use an Interest Rate of 10% to work out the NPV.**

- You invest $500 now, so PV = −$500.00. Money In: $570 next year.
- PV = $518.18 (to nearest cent) And the Net Amount is:
- Net Present Value = $518.18 − $500.00 = $18.18.

Furthermore, how do I calculate net present value?

**Formula for NPV**

- NPV = (Cash flows)/( 1+r)i.
- i- Initial Investment.
- Cash flows= Cash flows in the time period.
- r = Discount rate.
- i = time period.

The net present value (NPV) function is used to discount all cash flows using an annual nominal interest rate that is supplied. Enter the cash flows using **CFj** and Nj. Store the annual nominal interest rate in I/YR, and press SHIFT, then NPV.