hurdle rate

Popular Terms
Minimum return on investment necessary to cover all costs associated with a project. If the expected rate of return is below the hurdle rate, the project is abandoned or is modified to increase the return. It must be equal to the incremental cost of capital and is also called break-even yield.

Use 'hurdle rate' in a Sentence

The hurdle rate was determined so we had clear goals and targets to reach in order to turn a profit.
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We may not be able to continue with our home remodeling project because we have failed to reach the hurdle rate; so, we are spending more than the remodel is worth.
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The hurdle rate was something to pay attention to because it dealt with money and costs and the well being of our company.
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