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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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

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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

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

A fund might fail to clear the minimum annualized return threshold, known as a hurdle rate.

From The Wall Street Journal Nov. 20, 2025

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

A high premium hikes the project hurdle rate, making it harder to justify new investments, and vice versa.

From BusinessWeek Sep. 28, 2011

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