03 / 15 · GLOSSARY
03 / 15MARRDificultad

Minimum Attractive Rate of Return

The minimum return you require from your investment. Below this threshold, it's better to put money in another alternative (bank, savings, etc.).

↳ Analogía

It's like the minimum interest a bank would require. If your business doesn't beat that, better leave the money in savings.

Ejemplo numérico

High MARR = stricter, you reject more, but the ones that pass are solid. Low MARR = you accept more risk. For LATAM SMEs: 18–25% is reasonable. Opportunity cost (USD term deposit): 10%. Industry risk premium: 12%. → MARR = 22%. Your project must earn more than 22% to justify the risk.

Fórmula
MARR = Opportunity cost + Risk premium
↳ Ver tambiénNPVIRR
What is MARR and how to set it for your business→

When to use it

Before computing NPV or IRR. It's the most sensitive parameter in the analysis: a poorly calibrated MARR makes a bad project look good and vice versa.

Run your own case

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Definitions aligned with Blank & Tarquin, Engineering Economy, 8th edition — McGraw-Hill.