Indirect Cost Rate with MTDC Calculator
Use this calculator when building the indirect cost section of a federal grant budget. It helps you correctly compute Modified Total Direct Costs (MTDC) — the base to which your indirect rate is applied — and then applies either your Negotiated Indirect Cost Rate Agreement (NICRA) rate or the de minimis rate (up to 15% of MTDC under 2 CFR 200.414(f), effective for awards issued on or after October 1, 2024).
For example, if your organization is the prime applicant with a 12% NICRA and you are subawarding $120,000 to a partner, only the first $50,000 of that subaward is included in your MTDC under 2 CFR 200.1 — a mistake that reviewers catch immediately and that can result in disallowed costs even on an awarded grant. Enter your direct cost categories and subaward amounts below to get the correct indirect cost recovery.
Rules last reviewed: 2026-10-05 — 2 CFR 200.414 · 2 CFR 200.1 (MTDC) · 2 CFR 200.331
This is a planning tool, not legal, financial, or agency guidance. Always confirm the applicable Uniform Guidance version, notice of funding opportunity, award terms, and any agency-specific indirect-cost limitations before submitting a proposal.
Indirect Cost Rate Basis
Recipients and subrecipients without a current Federal negotiated indirect cost rate may elect a de minimis rate of up to 15% of MTDC. Award-specific or statutory restrictions may limit what can be charged. 2 CFR 200.414
Direct Cost Budget Line Items
Blue fields are inputs.
| Budget Category | Amount | MTDC Treatment |
|---|---|---|
| Personnel (Salaries & Wages) | Included | |
| Fringe Benefits | Included | |
| Travel | Included | |
| Materials & Supplies | Included | |
| Other Direct Costs (services, etc.) | Included | |
| Equipment (unit cost ≥ $10,000 or your lower capitalization threshold) | Excluded | |
| Capital Expenditures / Alterations & Renovations | Excluded | |
| Participant Support Costs (stipends, travel, subsistence) | Excluded | |
| Tuition Remission | Excluded | |
| Scholarships & Fellowships | Excluded | |
| Rental Costs | Excluded |
Subcontracts / Subawards
Only the first $50,000 of each individual subcontract or subaward is included in the MTDC base, regardless of the period of performance. Amounts above $50,000 per subcontract remain direct costs but are excluded from MTDC. 2 CFR 200.1
| # | Subcontractor Name | Total Subcontract Amount | MTDC Included (Auto-Capped) | Excluded from MTDC (Above $50K Cap) | |
|---|---|---|---|---|---|
| 1 | $0.00 | $0.00 | |||
| 2 | $0.00 | $0.00 | |||
| 3 | $0.00 | $0.00 | |||
| 4 | $0.00 | $0.00 | |||
| 5 | $0.00 | $0.00 | |||
| 6 | $0.00 | $0.00 | |||
| 7 | $0.00 | $0.00 | |||
| 8 | $0.00 | $0.00 |
Examples: A $30,000 subcontract adds $30,000 to MTDC. A $50,000 subcontract adds $50,000 to MTDC. A $125,000 subcontract adds $50,000 to MTDC and excludes $75,000. Two separate $125,000 subcontracts add $100,000 total to MTDC because the cap applies separately to each subcontract.
Calculated Results
Indirect cost calculation: 15.0% × $0.00 MTDC = $0.00.
Last calculated: —
Eligibility Notes and MTDC Rules
- The de minimis indirect cost rate is available to recipients and subrecipients that do not have a current Federal negotiated indirect cost rate, including a provisional rate.
- The user may select an appropriate de minimis rate up to 15% of MTDC.
- The de minimis rate may be used indefinitely unless the organization chooses to obtain a negotiated rate.
- Costs must be charged consistently as either direct or indirect costs and may not be double charged.
- The de minimis rate does not apply to cost-reimbursement contracts issued directly by the Federal Government under the FAR.
- A statute, regulation, funding opportunity, award term, or agency-specific policy may impose a lower indirect-cost limit.
These points are general information, not an eligibility determination. 2 CFR 200.414
- A negotiated rate is established through a formal negotiated indirect cost rate agreement with the organization's cognizant Federal agency.
- Enter the applicable negotiated percentage exactly as permitted by the rate agreement and award terms.
- Some awards may cap indirect cost recovery below an organization's negotiated rate.
- A negotiated agreement may contain different rates, bases, locations, or limitations. This calculator is designed specifically for a rate applied to MTDC; users should confirm that MTDC is the correct base for the rate they are using.
- Direct salaries and wages
- Applicable fringe benefits
- Materials and supplies
- Services
- Travel
- Up to the first $50,000 of each subaward, regardless of the subaward's period of performance
- Equipment
- Capital expenditures
- Charges for patient care
- Rental costs
- Tuition remission
- Scholarships and fellowships
- Participant support costs
- The portion of each subaward over $50,000
The spreadsheet model includes the listed budget categories. If your proposal includes patient-care charges or other unusual cost categories, seek agency guidance before finalizing the MTDC base. 2 CFR 200.1
Example inputs:
- Personnel: $100,000
- Fringe Benefits: $25,000
- Travel: $10,000
- Materials & Supplies: $15,000
- Other Direct Costs: $20,000
- Equipment: $30,000
- One subcontract: $125,000
- Rate basis: De Minimis at 15.0%
Calculated results:
- MTDC from Line Items: $170,000.00
- MTDC from Subcontract: $50,000.00
- Total MTDC Base: $220,000.00
- Total Excluded from MTDC: $105,000.00
- Total Direct Costs: $325,000.00
- Indirect Cost: $33,000.00
- Total Project Budget: $358,000.00
The $30,000 equipment purchase remains part of the direct-cost budget but is excluded from MTDC. Of the $125,000 subcontract, only the first $50,000 enters the MTDC base; the remaining $75,000 is excluded from MTDC. The 15% indirect rate is therefore applied to $220,000, not to the full $325,000 in direct costs.
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Frequently Asked Questions
What is the de minimis indirect cost rate?
The de minimis rate is a simplified indirect cost rate available to recipients and subrecipients that do not have a current federal negotiated indirect cost rate, including a provisional rate. Under 2 CFR 200.414(f), as revised effective October 1, 2024, eligible organizations may use a rate of up to 15% of Modified Total Direct Costs (MTDC) without negotiating a rate or providing documentation to justify it, and may continue using it indefinitely. Awards issued before October 1, 2024 follow the earlier 10% de minimis rate.
What is MTDC and what is excluded from it?
Modified Total Direct Costs (MTDC) is defined at 2 CFR 200.1 as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $50,000 of each subaward. 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 over $50,000. Other items may be excluded only to avoid a serious inequity in the distribution of indirect costs, and only with approval from your cognizant agency for indirect costs. If you have a negotiated rate agreement, confirm the base it uses, since some agreements define exclusions such as rental costs more narrowly.
Why is only the first $50,000 of a subaward included in MTDC?
The $50,000 subaward cap (2 CFR 200.1) prevents the prime applicant from recovering indirect costs on funds that the subrecipient will itself spend and recover indirect costs on. Each party applies its own approved rate to its own direct costs.
Can I use the de minimis rate if I have a NICRA?
Not while your negotiated rate is current. If your organization has a current negotiated rate agreement, including a provisional rate, you must use that rate unless the award or a statute caps indirect costs lower. If your NICRA has expired and you have no provisional rate, you may elect the de minimis rate of up to 15% of MTDC under 2 CFR 200.414(f).
What if the RFP caps indirect costs below my approved rate?
Some RFPs limit indirect costs (for example, to 10% or 15%). You must use the lower of the RFP cap or your approved rate. Your organization can absorb the difference as cost share, or treat the capped amount as its full indirect recovery for that grant.