{"uid":"cap_-eUzehdKDA1LFM7POwhr0","slug":"business-frameworks-hurdle-rate-calculator-71707c9e","name":"Business Frameworks Hurdle Rate Calculator","description":"Business Frameworks — Set the hurdle rate, applied to the caller's own numbers. Send the long-bond yield and two or three asset betas; get r for this business, with the sub-$5M and concentration rules applied. Deterministic (the node's rule, no model); returns the worked decision plus the node text and its public citations. Schema at GET /apply/risk/decide/hurdle.","url":"https://business-frameworks.matryoshka-paradigms.workers.dev/apply/risk/decide/hurdle","method":"POST","headers":{},"bodySchema":{"type":"object","$schema":"https://json-schema.org/draft/2020-12/schema","required":["input"],"properties":{"input":{"type":"object","required":["type","method","bodyType","body"],"properties":{"body":{"type":"object","required":["long_bond_yield_pct","asset_betas"],"properties":{"asset_betas":{"type":"array","items":{"type":"number"},"minItems":1,"description":"asset betas of two or three comparable companies, debt stripped out"},"revenue_usd":{"type":"number","description":"annual revenue; below $5M the probability of the plan goes into the cash flows, not the rate"},"plan_probability":{"type":"number","maximum":1,"minimum":0,"description":"below $5M: probability the plan works"},"market_premium_pct":{"type":"number","default":6,"description":"market premium in points; the node's rule of thumb is roughly six"},"long_bond_yield_pct":{"type":"number","description":"long government bond yield, percent"},"personal_premium_pct":{"type":"number","default":0,"description":"a concentrated owner's stated personal premium, in points — stated, never hidden"}}},"type":{"type":"string","const":"http"},"method":{"enum":["POST"],"type":"string"},"bodyType":{"enum":["json","form-data","text"],"type":"string"}},"additionalProperties":false},"output":{"type":"object","required":["type"],"properties":{"type":{"type":"string"},"example":{"type":"object"}}}}},"responseSchema":null,"example":null,"exampleRequest":null,"tags":["x402"],"displayCostAmount":"0.05","displayCostAsset":"USDC","priceDynamic":false,"priceHint":null,"priceStatus":"priced","priceSource":"probe","requiresHandshake":false,"reviewCount":0,"rating":{"score":"0.00","successRate":"0.00","reviews":0,"stars":null,"state":"unrated"},"availabilityStatus":"unknown","priceObserved":null,"sessionDeposit":null,"pricing":{"kind":"static","summary":"$0.01/call","primary":{"kind":"static","protocol":"x402","network":"base","amountUsd":"0.01","per":"call","confidence":"exact"},"accepted":[{"kind":"static","protocol":"x402","network":"base","amountUsd":"0.01","per":"call","confidence":"exact"}]},"paymentMethods":[{"uid":"pm_nbsx3NSTmRSukFUwzUjp_","protocol":"x402","methodType":"crypto","chain":"base","mode":"charge","costAmount":"0.01","costPer":"request","priority":0,"asset":null,"unit":"request","depositMicros":null,"planRef":null}],"brandName":null,"brandSlug":null,"brandBaseUrl":null,"brandDocsUrl":null,"whatItDoes":"Calculates a deterministic cost-of-capital (hurdle rate) for a business by applying CAPM with concentration and sub-$5M plan-probability rules to caller-supplied bond yield and asset betas","exampleAgentPrompt":"What hurdle rate should I use to value a business with asset betas of 0.8, 1.1, and 0.95, a long bond yield of 4.5%, and annual revenue of $3M where I think the plan has a 70% chance of working — include a 2-point personal concentration premium?","exampleUseCases":[{"title":"Small business acquisition discount rate","prompt":"I'm evaluating a $4M revenue HVAC business. The long bond yield is 4.2%, comparable asset betas are 0.7 and 0.9, and I think the plan has about a 60% chance of succeeding. What hurdle rate should I use to discount its cash flows?"},{"title":"Concentrated owner valuation check","prompt":"I own 100% of a distribution company and want to know my personal required return. Long bond is at 4.8%, I've got three comparable unlevered betas of 0.85, 1.0, and 1.1, and I want to add a 3-point concentration premium on top. What's the right hurdle rate?"},{"title":"Standard CAPM hurdle rate for mid-market deal","prompt":"What's the cost of equity for a mid-market manufacturing business with asset betas of 1.2 and 1.05, current long government bond yield of 4.6%, and a standard 6-point market premium? Revenue is well above $5M so no plan probability adjustment needed."}],"resultDescription":"Returns the computed hurdle rate (r) for the business, a full worked decision showing how the rate was derived, the exact node rule text that governed the calculation, and the public citations behind that rule — all deterministic with no model inference involved.","failureModes":["Missing required fields (long_bond_yield_pct or asset_betas) returns a 400 validation error","Fewer than 1 or more than 3 asset betas may be rejected or produce unreliable results","plan_probability outside [0,1] is rejected","Payment not included or insufficient USDC causes a 402 Payment Required response","Providing revenue_usd above $5M while also setting plan_probability has no effect (concentration rule not triggered)"],"whenToPreferThis":"Choose this endpoint when you need a fully deterministic, rule-based hurdle rate grounded in a specific published framework — not a black-box model estimate. It is ideal for valuing private or owner-operated businesses, especially sub-$5M situations where plan probability belongs in the rate, or for concentrated-owner scenarios requiring an explicit personal premium. Prefer this over generic WACC calculators when you want the decision logic and citations returned alongside the number.","instructions":null,"reviewSummary":null,"reviewSummaryHighlights":null,"reviewSummaryConcerns":null,"reviewSummaryGeneratedAt":null,"activationCount":0,"lastUsedAt":null,"lastSuccessfullyRanAt":null,"lastHealthCheckAt":"2026-09-18T06:34:52.511Z","isFirstParty":false}