Work out grant budget allocation instantly with clear inputs, formula shown and shareable results.
Overhead is normally charged on top of direct costs, so a 250,000 total at a 25% rate contains 50,000 of overhead and 200,000 of direct costs. Allocating 60% of direct costs to staff gives 120,000, with 20,000 for equipment leaving 60,000 for everything else. Confusing overhead-inclusive and exclusive totals is the commonest budgeting error.
Overhead from an inclusive total
overhead = total x rate / (1 + rate)
Direct costs
direct = total - overhead
On direct costs, then added. So a 25% rate on 200,000 direct gives 50,000 overhead and a 250,000 total - not 62,500.
Buildings, utilities, libraries, administration and research support that cannot be attributed to a single project.