Afkastastigi

Afkastastigi is a term used in Icelandic financial discourse to refer to a step or level of return. The word blends afkast, meaning return or yield, with stigi, meaning step or level. It is not a standardized metric in international finance, and its precise meaning can vary by context.

In practice, afkastastigi tends to describe a tiered or staged view of performance. It may be used to categorize returns into brackets, such as different levels of performance within a fund or investment plan, or to denote the incremental increase in return needed to move from one performance tier to another. Because there is no single, official definition, the exact interpretation depends on the documentation or commentary in which the term appears.

As a concept, afkastastigi often functions as a qualitative or ordinal measure rather than a fixed quantitative metric. One common interpretation is that it captures the idea of “steps” in return—for example, the levels an investor must surpass to reach higher performance brackets—rather than a specific numeric formula. In some contexts, it may be used alongside or instead of more conventional terms like afkast (return) or ávöxtun (yield), depending on local usage.

Etymology and usage notes: afkastastigi is of Icelandic origin and reflects how speakers describe staged or bracketed returns. Because it is not a universally defined financial term, readers should consult source material in which the term appears to understand the intended meaning in that context. See also: afkast, ávöxtun.