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.

  1. First, determine the total indirect expenses ($). 
  2. Next, determine the direct cost base ($). 
  3. Next, gather the formula from above = ICR = TIE / DC.
  4. Finally, calculate the Indirect Cost Rate.
  5. 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