hurdle rate

Required investment benchmark

A hurdle rate is the minimum acceptable return on an investment—the threshold a project must clear to be worth pursuing.

In corporate finance, proposals that don't exceed the hurdle rate get rejected: With a hurdle rate of 12%, any project returning less isn't worth our capital.

The metaphor comes from track hurdles that runners must clear to continue.

Related

investment · discount · barrier · minimum · capital · risk · project · IRR · NPV · approval · reject · portfolio · opportunity · cost · make or break · clearance · target · performance

Categories
Opposites
threshold type

hurdle rateupper limit

Maximum permitted value

budget cap

investment acceptance

hurdle rateunconditional acceptance

Embrace requiring nothing in return

approval criteria stringency

hurdle raterubber stamp

Automatic approval device

low bar

Family

hurdle, rate, hurdles, hurdled, hurdling, hurdler, hurdlers, rates, rated

Familiarity
Top 1,000,000
Profile
Used worldwide · Timeless · Abstract · Rated G