Indirect costs like rent and legal fees are usually calculated as a percentage of direct costs. The NSF lets startups claim either 50% of budgeted salaries or 10% of modified total direct costs, depending on the funding agency and your situation.
So examples of indirect costs can include rent, office supplies, or legal counsel. And here's the catch. Indirect costs are typically calculated based on a percentage of your direct costs, and the rates might vary depending on your startup's position and also the agency's requirements. So for example, the NSF allows for 50% of the budgeted salaries or wages, or 10% of the modified total direct cost as the indirect cost for startups.
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