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

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

From The Wall Street Journal ● Nov. 20, 2025

“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

Part of the problem was the high hurdle rate — 8.4 percent in August 1994 compared with 2.2 percent for this August.

From New York Times ● Jul. 22, 2011