Sample Calculation

How is F&A calculated?

An F&A rate is reflected as a percentage which is then multiplied by the direct cost base of the grant in order to determine the amount of F&A to be charged. An example of a FY21 on-campus organized research budget is below:

Sample BudgetTotal Budget
Salaries$ 160,000
Fringe Benefits43,600
Total Direct Costs (TDC)$ 220,000
Exclusions (Equipment)(6,000)
Modified Total Direct Costs (MTDC)$ 214,000
Total Direct Costs (TDC)$ 220,000
x F&A Rate56 %
TDC F&A Total$ 123,200
Total Cost (TDC + F&A Total)$ 343,200
Modified Total Direct Costs (MTDC)$ 214,000
x F&A Rate56%
MTDC F&A Total$119,840
Total Cost (MTDC + F&A Total)$333,840


Modified Total Direct Costs include: all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25K of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract).

The Total Direct Cost (TDC) base includes: all direct costs without exclusions

Modified Total Direct Costs exclude: equipment, capital expenditures, charges for patient care, student tuition remission, rental costs of off-site facilities, scholarships, and fellowships as well as the portion of each subgrant and subcontract in excess of $25K.