What Is This Calculator For?
When writing a federal research grant budget, most researchers know they need to add indirect costs — but correctly computing the MTDC (Modified Total Direct Cost) base is where mistakes happen. Getting it wrong means either overbidding (the agency may reduce your award) or underbidding (you and your institution lose F&A recovery). This tool does the math correctly, applying all exclusions per 2 CFR §200.1 and letting you model multi-year budgets and different F&A rate scenarios instantly.
How to Use This Calculator
- Set your Award type (research, training, SBIR, or private foundation).
- Enter your institution's F&A rate — find it in your NICRA or ask your sponsored programs office.
- Choose your subaward MTDC cap ($50K for NICRAs updated after October 1, 2024; $25K for older agreements).
- Add each budget line item — description, category (salary, fringe, equipment, subaward, etc.), and dollar amount.
- The results update instantly showing TDC, MTDC base, F&A cost, and total project cost.
- Use the multi-year projection to see escalating costs across the full project period.
The MTDC Formula Explained
Step 1 — Total Direct Costs (TDC):
Step 2 — MTDC Base (Modified Total Direct Costs):
Where subaward excess = amount of each subaward above your MTDC cap ($50K or $25K per subaward)
Step 3 — F&A Costs:
Step 4 — Total Project Costs:
TDC = sum of all direct cost line itemsStep 2 — MTDC Base (Modified Total Direct Costs):
MTDC = TDC − equipment − capital expenditures − patient care − tuition remission − scholarships/fellowships − participant support costs − rental costs − subaward excess over capWhere subaward excess = amount of each subaward above your MTDC cap ($50K or $25K per subaward)
Step 3 — F&A Costs:
F&A = MTDC × (F&A rate / 100)Step 4 — Total Project Costs:
Total = TDC + F&A
MTDC Category Reference
The following categories of direct costs are excluded from the MTDC base and do not attract F&A charges:
- Equipment — items ≥$10,000 per unit (or ≥$5,000 for institutions with older NICRAs). Lease/rental of equipment is included in MTDC unless the lease includes a purchase option.
- Subaward excess — only the first $50,000 (or $25,000) of each subaward is in the MTDC base; the remainder is excluded.
- Tuition remission — graduate student tuition charged directly to the award.
- Patient care costs — costs of clinical services to research subjects.
- Participant support costs — stipends, travel, and subsistence for training participants.
- Capital expenditures — alterations, renovations, and construction.
- Rental costs — space rental charged directly to the grant.
- Scholarships & fellowships — direct costs of fellowship awards.
All other direct costs — salaries, fringe benefits, materials and supplies, services, and travel — are included in MTDC.
Special Award Types
- Training grants (T-awards, F-awards): F&A is capped at 8% of MTDC per NIH policy.
- SBIR/STTR: F&A is calculated as a percentage of total direct costs (TDC), not MTDC. NIH allows up to 40% TDC for SBIR/STTR.
- De minimis rate: Organizations without a negotiated rate may use 15% of MTDC (updated from 10%, effective October 1, 2024) per 2 CFR §200.414(f).
- Off-campus rate: Many institutions have a separate, lower F&A rate for work performed at off-campus sites (field work, clinical facilities). Check your NICRA.
Frequently Asked Questions
What is MTDC in a federal grant budget?
Modified Total Direct Cost (MTDC) is the base on which your institution applies its F&A (indirect cost) rate. Per 2 CFR §200.1, MTDC includes direct salaries, fringe benefits, materials, supplies, services, travel, and the first $50,000 of each subaward. It excludes equipment (≥$10,000), capital expenditures, patient care charges, rental costs, tuition remission, scholarships and fellowships, participant support costs, and subaward amounts over $50,000. Getting the exclusions right is critical to an accurate budget.
How do I calculate F&A costs on a research grant?
F&A (Facilities and Administrative) costs = MTDC base × your institution's negotiated F&A rate. Your institution's rate is set in a Negotiated Indirect Cost Rate Agreement (NICRA) with a federal cognizant agency (HHS, ONR, etc.). Typical on-campus research rates range 50–70%; off-campus rates are often 26–36%. Enter your rate in the "F&A rate" field above and this tool handles the rest.
What is the subaward MTDC cap — $25,000 or $50,000?
Under the 2024 update to 2 CFR §200.1 (effective October 1, 2024), only the first $50,000 of each subaward is included in the MTDC base — updated from the prior $25,000 threshold. However, your institution must have a NICRA that cites the $50,000 threshold to use it. If your NICRA was negotiated before October 1, 2024 and has not been updated, the $25,000 cap still applies. Select the appropriate threshold for your institution in the settings above.
What equipment threshold applies for MTDC exclusion?
Per the 2024 revision to 2 CFR §200.1, the equipment threshold increased from $5,000 to $10,000 per unit — for institutions whose NICRAs cite the updated threshold. Equipment costing $10,000 or more per unit is excluded from MTDC. If your NICRA still references the old $5,000 definition, that applies to your grant. Equipment leases without a purchase option remain in MTDC.
What is the NIH de minimis F&A rate?
Organizations without a negotiated indirect cost rate (NICRA) may elect the de minimis rate of 15% of MTDC per 2 CFR §200.414(f), updated from 10% effective October 1, 2024. This rate may be used indefinitely by any eligible entity. NIH training grants use a fixed 8% of MTDC. SBIR/STTR recipients may recover up to 40% of total direct costs as indirect.
What is the difference between TDC and MTDC indirect cost bases?
TDC (Total Direct Cost) applies the F&A rate to all direct costs with no exclusions — simpler but results in higher F&A charges for grants with large equipment or subaward budgets. MTDC applies the rate only to eligible cost categories, excluding equipment, subaward excess, tuition, patient care, etc. Most federal research grants use MTDC per 2 CFR §200.1. Some private foundations specify TDC or a capped percentage of total award. Use the "Award type" dropdown to switch between calculation methods.
Do subcontractor (consultant) costs go in the MTDC base?
Standard commercial consultant agreements and subcontracts-for-goods-or-services are NOT subawards and do not have the $50K/$25K MTDC cap applied — they are fully included in the MTDC base like any other service cost. Only true subawards (where a sub-recipient is carrying out a portion of the program) receive the partial exclusion. If you have a subaward vs. a procurement contract, contact your sponsored programs office for guidance.
Disclaimer: This tool is for budget planning and estimation purposes only. Indirect cost rate policies, NICRA terms, and award-specific requirements vary by institution and sponsor. Always verify your institution's current NICRA with your sponsored programs or grants management office before submitting a grant application. This calculator does not constitute financial or grants compliance advice. Formula source: 2 CFR §200.1 (eCFR, current) and NIH Notice NOT-OD-25-059.