CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is a minimum acceptable rate of return (MARR)?

Minimum acceptable rate of return

A minimum acceptable rate of return (MARR) is the minimum profit an investor expects to make from an investment, taking into account the risks of the investment and the opportunity cost of undertaking it instead of other investments.

Where have you heard about minimum acceptable rates of returns (MARR)?

If you've done any research and cost analysis before making an investment, you've probably worked out the minimum acceptable rate of return. Minimum acceptable rates of return are also known as hurdle rates, cut-off rates or benchmarks.

What you need to know about minimum acceptable rates of returns (MARR).

MARRs are a useful way of weighing up whether an investment is worth the risks associated with it. To calculate the MARR, you need to look at different aspects of the investment opportunity, including the opportunities for expanding operation and rate of return on investments.

An investment has been a successful one if the actual rate of return is above the minimum acceptable rate of return. If it is below, it's seen as an unsuccessful investment and you might, as an investor, pull out of the investment.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading