Calculating Indirect Costs of Research

This page contains current indirect costs rates (ICR) and policies that should be applied to non-Tri-Council research performed on the UBC Okanagan campus. See ICR Policy for more details.


The following table describes appropriate indirect costs rates on the UBCO campus:

Nature of Agreement % ICR charged
Standard collaborative agreement 40
Government grants and contracts 25
Industry match with Tri-Council 25
Non-industry funding 25
Philanthropic donations* 15
Agency-specific rates** Varies


*Classified as funding intended for research that 1) flows through UBC Fund Development and 2) is delivered via a non-competitive process, i.e. there is no application or deadline.

**See the Table of verified rates in RISe for agency-specific rates: see “ICR Rates” tab on the RISe website.

Calculating Indirect Costs

There are two ways to incorporate ICR into a budget: the “price” model, and the “cost” model.

The price model incorporates ICR in each line item. For example, the price for personnel would be (salary + benefits) x 125%  = total salary price.

The cost model calculates ICR as its own budget line. For example, when an application form of a sponsor requires that indirect cost be presented as a separate line item, budgets should include an indirect costs line-item equal to 25% of the total costs (or other, agency-specific rate).

If your funding partner is going to contribute $30,000 to direct costs, what additional amount do they need to contribute to ICR?

Multiply contribution by 0.X Indirect Costs Total contribution
25% $30,000*0.25 $7500 $37,500
40% $30,000*0.40 $12000 $42,000


If your partner can only contribute $30,000, how much goes to ICR?

Divide by 1.X X=ICR rate Direct costs Subtract from total Indirect costs
25% $30,000/1.25 $24,000 $30k-24k $6,000
40% $30,000/1.40 $21,429 $30k-21.4k $8,571


Multiply contribution by 0.X Indirect Costs Total contribution
25% $30,000*0.25 $7500 $37,500
40% $30,000*0.40 $12000 $42,000