Enter the total indirect expenses ($) and the direct cost base ($) into the Calculator. The calculator will evaluate the Indirect Cost Rate.

## Indirect Cost Rate Formula

ICR = TIE / DC

Variables:

- ICR is the Indirect Cost Rate ()
- TIE is the total indirect expenses ($)
- DC is the direct cost base ($)

To calculate Indirect Cost Rate, divide the total indirect expenses by the direct cost base.

## How to Calculate Indirect Cost Rate?

The following steps outline how to calculate the Indirect Cost Rate.

- First, determine the total indirect expenses ($).
- Next, determine the direct cost base ($).
- Next, gather the formula from above = ICR = TIE / DC.
- Finally, calculate the Indirect Cost Rate.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

total indirect expenses ($) = 400

direct cost base ($) = 100