Hurdle Rate

What is a Hurdle Rate?

A hurdle rate is the minimum rate of return that a company or investor expects to earn on a project or investment. If a proposed project's expected return is below the hurdle rate, it will be rejected. The hurdle rate is usually set based on the level of risk involved; a riskier project will have a higher hurdle rate. In a partner program, a vendor might have an internal hurdle rate for the ROI they expect to see from their investment in a particular partner or a specific marketing campaign.

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