Indirect cost calculator
Enter your grant's direct costs by category and year. The calculator removes the costs that modified total direct costs (MTDC) excludes, caps each subaward, and applies the 15% de minimis rate or your negotiated rate.
Budget inputs
| Direct costs | Year 1 | Year 2 | |
|---|---|---|---|
| Salaries and wagesIn base | |||
| Fringe benefitsIn base | |||
| TravelIn base | |||
| Materials and suppliesIn base | |||
| Contracts for servicesIn base | |||
| EquipmentExcluded | |||
| Rental costsExcluded | |||
| Participant support costsExcluded | |||
| SubawardsOnly the first $50,000 of each subaward, across all years, is in the base. | |||
| Cap reached · $30,000 excluded | |||
| Cap reached · $20,000 excluded | |||
Indirect and total budget
- Indirect cost budget · 2 years
- Total direct costs$533,200
- − Excluded costs$64,000
- − Over subaward cap$50,000
- MTDC base$419,200
- Indirect costs15%$62,880
- Total budget$596,080
- Year 1$35,850
- Year 2$27,030
Preview the text
Indirect costs of $62,880 are calculated at the de minimis rate of 15% under 2 CFR 200.414(f), applied to a modified total direct cost (MTDC) base of $419,200 over 2 years. The base excludes equipment ($20,000), rental costs ($24,000), participant support costs ($20,000), and subaward costs above the first $50,000 of each subaward ($50,000), as defined in 2 CFR 200.1. Total direct costs are $533,200, for a total budget of $596,080.
This calculator estimates a proposal budget. It does not replace your negotiated rate agreement, the award terms, or review by your grants office or accountant.
How the calculation works
Indirect costs = MTDC × your indirect cost rate. MTDC is your total direct costs minus equipment, capital expenditures, patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the part of each subaward above $50,000. Awards made on or after October 1, 2024 may use a de minimis rate of up to 15% of MTDC.
In the example budget above, total direct costs are $533,200. Excluded categories remove $64,000, and subaward amounts above the first $50,000 of each subaward remove $50,000. That leaves an MTDC base of $419,200. At 15%, indirect costs are $62,880, for a total budget of $596,080.
For the full definition, edge cases, and audit support, read the MTDC guide.
Indirect cost questions
What does MTDC exclude?
Under 2 CFR 200.1, MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward above $50,000. Your negotiated rate agreement can define the base differently, so follow its terms when you have one.
What is the de minimis indirect cost rate?
For awards made on or after October 1, 2024, 2 CFR 200.414(f) lets an organization without a current negotiated rate charge up to 15% of MTDC. Awards made before that date used 10%, though agencies could apply the 2024 rules to existing awards, so check your award terms. You can choose a lower rate, but you must apply it consistently to all federal awards.
How are subawards treated in MTDC?
Only the first $50,000 of each subaward enters the base, across the whole period of performance, not per year. A subaward of $30,000 in year 1 and $50,000 in year 2 adds $30,000 and then $20,000. Contracts for services are not subawards and stay in the base.
What counts as equipment?
Equipment is tangible property with a useful life of more than one year and a per-unit cost at or above the lesser of your capitalization level or $10,000 ($5,000 for awards made before October 1, 2024). Cheaper items are usually supplies, which stay in the base.
Do indirect costs count against the award ceiling?
Usually yes. Most funding announcements state a total award amount that includes indirect costs, so the total budget is direct costs plus indirect costs. Check the ceiling and any indirect cost limit in your funding announcement.
Sources: 2 CFR 200.1 (definition of MTDC) · 2 CFR 200.414(f) (de minimis rate)
Track the budget after the award.
GrantLink connects QuickBooks Online to grant budgets, allocations, and funder reports, including indirect cost runs on the base your award uses.