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

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

But the hurdle rate for “investigative” journalism has apparently become low.

From The Wall Street Journal • Nov. 6, 2015

“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

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

From New York Times • Jul. 22, 2011