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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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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

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

From BusinessWeek Sep. 28, 2011

Anything left over because of higher returns than the hurdle rate will be passed on to heirs.

From New York Times Jul. 22, 2011

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