F&A Rate Model Calculator
Calculate Indirect Costs (IDC) based on Modified Total Direct Costs (MTDC)
Included in F&A Base (Subject to Overhead)
Salaries, wages, and fringe benefits.
Materials, supplies, travel, publication costs, services.
Only the first $25k of each subcontract is subject to F&A.
Excluded from F&A Base
Items with useful life >1yr and cost >$5,000 (standard threshold).
Student tuition or stipends/travel for training participants.
The remaining amount of subcontracts exceeding $25k.
Rate Parameter
Enter the percentage (e.g., 52.5 for 52.5%).
Total Direct Costs (TDC):
$0.00
Exclusions (Not Taxed):
$0.00
Modified Total Direct Costs (MTDC Base):
$0.00
F&A (Indirect) Cost:
$0.00
Total Project Cost:
$0.00
(TDC + F&A Cost)
Understanding the F&A Rate Model
The F&A Rate Model Calculator is designed to assist grant administrators, principal investigators (PIs), and university finance officers in modeling the total costs of a research proposal. F&A stands for Facilities and Administrative costs, often referred to as "Indirect Costs" or "Overhead."
Key Concept: MTDC (Modified Total Direct Costs)
Most federal grants (NIH, NSF) do not calculate overhead on the absolute total of direct costs. Instead, they use a "Modified" base that excludes certain expense categories like equipment, tuition, and large subcontract portions.
Most federal grants (NIH, NSF) do not calculate overhead on the absolute total of direct costs. Instead, they use a "Modified" base that excludes certain expense categories like equipment, tuition, and large subcontract portions.
How the Calculation Works
This calculator separates your budget into two primary buckets to ensure accuracy:
- MTDC Base (Included): Costs that attract overhead charges. This typically includes salaries, fringe benefits, materials, supplies, travel, and the first $25,000 of each subaward.
- Exclusions (Excluded): Costs that are exempt from overhead charges. This typically includes capital equipment (usually defined as items >$5,000 with a life >1 year), tuition remission, patient care costs, and the portion of any subaward exceeding $25,000.
Formula Definitions
The model uses the following logic to determine the final grant request amount:
- Total Direct Costs (TDC) = Personnel + Operational + Equipment + Tuition + All Subcontracts.
- MTDC Base = Personnel + Operational + First $25k of Subcontracts.
- F&A Cost = MTDC Base × (F&A Rate / 100).
- Total Project Cost = TDC + F&A Cost.
Why This Matters for Budgeting
Miscalculating F&A is a common error in grant proposals. If you apply your rate to the Total Direct Costs (TDC) instead of the Modified Total Direct Costs (MTDC), you may significantly overestimate the budget, potentially leading to administrative rejection or budget cuts later. Conversely, forgetting to exclude equipment or tuition will inflate your indirect cost request improperly.
Note: While MTDC is the standard federal base, some non-federal sponsors may use TDC (Total Direct Costs) as the base. If your sponsor uses TDC, simply enter 0 in the exclusion fields or treat all costs as "Operational Costs."