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Indirect Costs Calculator

Formula

The formula to calculate the Indirect Costs (IC) is:

$IC = \frac{SOR}{100} \times DC$

Where:

$IC$ is the indirect costs ($).
$SOR$ is the sponsor's overhead rate (%).
$DC$ is the direct cost base ($).

What are Indirect Costs?

Indirect costs are defined as project-related costs that cannot easily be identified for a particular project. In other words, these are the overhead costs of a project.

Example Calculation

Consider an example where:

Sponsor's Overhead Rate (SOR): 15%
Direct Cost Base (DC): $10,000

Using the formula to calculate the Indirect Costs:

$IC = \frac{15}{100} \times 10000 = 1500$

This means that the indirect costs for this example are $1,500.