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.