hurdle rate

British  

noun

1. finance the rate of return that a proposed project must provide if it is to be worth considering: usually calculated as the cost of the capital involved adjusted by a risk factor

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Example Sentences

See Examples For:

hurdle rate

If the value doesn’t rise above the hurdle rate, the assets return to the grantor’s estate and the trust is dissolved.

From Barron's ● May 16, 2026

At the end of the trust’s term, any appreciation that is above a hurdle rate set by the Internal Revenue Service goes to heirs free of gift and estate taxes.

From Barron's ● May 16, 2026

Asked if he could buy Spirit, Minicucci touts Alaska’s record of acquiring Virgin America and Hawaiian Airlines, but says there is a “really, really high” hurdle rate for mergers and acquisitions in aviation.

From The Wall Street Journal ● Apr. 21, 2026

With a higher weighted-average cost of capital, the hurdle rate for new investments increases and fewer investments are chosen with today's net present value, discounted ROI models.

From New York Times ● Feb. 24, 2017

“Capital ratios already have extremely thick buffers above this required hurdle rate and they simply don’t have a lot of exposure to volatility to sovereign debt prices.”

From BusinessWeek ● Oct. 21, 2011