10% De Minimis Rate Calculator (MTDC)
Enter the total budget for all direct line items before exclusions.
Items with unit cost > $5,000 & useful life > 1 yr.
Portion of each subaward exceeding the first $25,000.
Scholarships, fellowships, and tuition remission.
Rental costs of off-site facilities.
Stipends, travel, and subsistence for participants.
Hospitalization and other patient care charges.
Total Direct Costs:
$0.00
Total Exclusions (Distorting Items):
-$0.00
MTDC Base (Modified Total Direct Costs):
$0.00
Indirect Cost Rate:
10%
Indirect Costs Recoverable:
$0.00
Total Project Cost (Direct + Indirect):
$0.00
How to Calculate the 10% De Minimis Rate
The 10% de minimis rate represents a simplified method for non-federal entities to recover indirect costs (Facilities and Administrative costs) on federal grants without negotiating a specific indirect cost rate agreement (NICRA). Under the Uniform Guidance (2 CFR 200.414), eligible organizations can charge a flat rate of 10% on Modified Total Direct Costs (MTDC).
What are Modified Total Direct Costs (MTDC)?
You cannot simply apply the 10% rate to your entire grant budget. You must first calculate the MTDC Base. The calculation subtracts specific "distorting" items from your Total Direct Costs.
The Formula:
MTDC = Total Direct Costs – Exclusions
Indirect Cost Amount = MTDC × 0.10
Required Exclusions
According to 2 CFR 200.68, the following costs must be excluded from the base before applying the 10% rate:
- Equipment & Capital Expenditures: Tangible personal property with a useful life of more than one year and a per-unit acquisition cost which equals or exceeds $5,000.
- Subawards in Excess of $25,000: You can include the first $25,000 of each subaward in your base. Any amount exceeding $25,000 per subaward must be excluded.
- Participant Support Costs: Direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences or training projects.
- Tuition Remission: Scholarships and fellowships.
- Rental Costs: Rent paid for off-site facilities.
- Patient Care: Hospitalization and other charges for patient care.
Example Calculation
Imagine a non-profit receives a grant with $100,000 in direct costs. This includes $10,000 for a new server (equipment) and a $30,000 contract to a partner (subaward).
- Total Direct Costs: $100,000
- Less Equipment: -$10,000
- Less Subaward Excess: -$5,000 (Because $30,000 – $25,000 limit = $5,000 excess)
- MTDC Base: $85,000
- Indirect Costs (10%): $8,500
- Total Request: $108,500
Use the calculator above to ensure your grant budget complies with federal regulations regarding the de minimis rate application.