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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

Example Sentences

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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

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

High interest rates also raised the "hurdle" rate of return, snuffing out investments that in the past would have been profitable.

From New York Times Jan. 1, 2013

“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

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