The percentage deducted for cost recovery can vary based on the method used to compute it. The rate for FY 2021 is 6.67% when based on the MIPR/IAA total or 6.67% when based on the amount that the university's IUCRC is to receive. Both percentages should yield the same dollar values. Documents that use the NSF 6.67% 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) | 6.67% |
| Amount to University (cost) | $93.33 |
| NSF cost recovery (markup) | 6.67 |
| MIPR/IAA total (selling price) | $100.00 |
| Percent markup (markup/selling price) | .0667% |
A sample computation based on the dollar amount to the university is shown below:
| NSF Recovery Rate (percentage) | 0.0667 |
| Amount to University (cost) | $100.00 |
| NSF cost recovery (markup) | 6.67 |
| MIPR/IAA total (selling price) | $107.15 |
| Percent markup (markup/cost) | 6.67% |
Membership Fee Based Calculation
Determining the program support is another alternative to computing the 6.67% 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 6.67%. This would be your formula:
Program support / (1 - rate) = total $ to be transferred to NSF
$100,000 / (1 – 0.0667) or $100,000/(0.9333) = $107,158 (rounded to the nearest whole dollar)