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NSF Cost Recovery Estimates

The percentage deducted for cost recovery can vary based on the method used to compute it. The rate for FY 2014 is 6.30% percent when based on the MIPR/IAA total or 6.724% when based on the amount that the university’s I/UCRC is to receive. Both percentages should yield the same dollar values. Documents that use the NSF 6.30% default recovery rate must base their calculation on the MIPR/IAA total (selling price). For a basic tutorial in computing cost recovery (percent markups), please visit http://www.ehow.com/how_4425471_calculate-markup-percentage.html

NSF default is based in the MIPR/IAA total. A sample computation follows:

NSF Recovery Rate (percentage) 6.30%
Amount to University (cost) $93.70
NSF cost recovery (markup) 6.30
MIPR/IAA total (selling price) $100.00
Percent markup (markup/selling price) .063%

A sample computation based on the dollar amount to the university is shown below:

NSF Recovery Rate (percentage) 0.06724
Amount to University (cost) $100.00
NSF cost recovery (markup) 6.30
MIPR/IAA total (selling price) $106.30
Percent markup (markup/cost) 6.724%

Membership Fee Based Calculation

Determining the program support is another alternative to computing the 6.30% which you might want to use in arriving at the same dollar values as presented above. Let’s assume that the university membership fee is $100,000 and that the NSF cost recovery rate is 6.30%. This would be your formula:

Program support / (1 - rate) = total $ to be transferred to NSF

$100,000 / (1 – 0.063) or $100,000/(0.937) = $106,723 (rounded to the nearest whole dollar)

 

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