How To Calculate Direct Cost

Users can calculate the direct cost of an item within a proposed budget using AmpliFund's Direct Cost Calculation tool. This tool supports the following formulas for calculating the direct cost: Base x Rate, Quantity x Rate, Salary x Percentage x Time, Time x Quantity x Rate, and Travel x Quantity x Rate.

1. Open the opportunity.
2. Click Budget.
3. Check the Line Items checkbox to view line Items.
4. Click the (Add icon) next to a budget category name.
5. In the pop-up window, update Category, if necessary.
6. Select Direct Cost Calculation under line Item Type. Choose from the available direct cost calculation formulas:
   • Base x Rate
   • Quantity x Rate
   • Salary x Percentage x Time
   • Time x Quantity x Rate
   • Travel x Quantity x Rate
7. Add the Name. The remaining fields will vary depending on the direct cost calculation formula that you choose.
8. Click Create.

Base x Rate

Users can calculate the direct cost of an item by entering the base amount in dollars and the rate as a percentage. The base represents the cost of the item or service, while the rate is an additional percentage to be applied to the base amount.

1. Click the (Add icon) next to a budget category name.
2. In the pop-up window, update Category, if necessary.
3. Select Direct Cost Calculation under line Item Type.
4. Select Base x Rate under Calculation Type.
5. Add the Name.
6. Add the Base. This is captured as a dollar amount.
7. Add the Rate. This is captured as a percentage.
8. Click Create.

Quantity x Rate

Users can calculate the direct cost of items by entering the quantity of the item(s) and the rate as a dollar amount. The quantity represents the number of items, while the rate represents the cost of each item in dollars.

1. Click the (Add icon) next to a budget category name.
2. In the pop-up window, update Category, if necessary.
3. Select Direct Cost Calculation under line Item Type.
4. Select Quantity x Rate under Calculation Type.
   
5. Add the Name.
6. Add the Quantity. This is captured as a number.
7. Add the Rate. This is captured as a dollar amount (e.g. cost per item).
8. Click Create.

Salary x Percentage x Time

Applicants can use the Salary x Percentage x Time formula to calculate the direct cost of a portion of someone's salary allocated to the project, based on the time they dedicate to it.

1. Click the (Add icon) next to a budget category name.
2. In the pop-up window, update Category, if necessary.
3. Select Direct Cost Calculation under line Item Type.
4. Select Salary x Percentage x Time under Calculation Type.
5. Add the Name.
6. Add the Position.
7. Add the Salary Amount. This is captured as a dollar amount.
8. Add the Basis (optional).
9. Add the % of Time. This is captured as a percentage.
10. Add the Length of Time. This is captured as number.
11. Click Create.

Time x Quantity x Rate

Applicants can use the Time x Quantity x Rate formula to calculate the direct cost for expenses based on the amount of time, the quantity, and the rate in dollars to determine the total cost.

1. Click the (Add icon) next to a budget category name.
2. In the pop-up window, update Category, if necessary.
3. Select Direct Cost Calculation under line Item Type.
4. Select Time x Quantity x Rate under Calculation Type.
   
5. Add the Name.
6. Add the Cost Rate. This is captured as a dollar amount.
7. Add the Basis (optional).
8. Add the Quantity. Quantity is captured as a number.
9. Add the Length of Time. Time is captured as a number.
10. Click Create.

Travel x Quantity x Rate

Applicants can use the Travel x Quantity x Rate formula to calculate the direct cost for travel-related expenses.

1. Click the (Add icon) next to a budget category name.
2. In the pop-up window, update Category, if necessary.
3. Select Direct Cost Calculation under line Item Type.
4. Select Travel x Quantity x Rate under Calculation Type.
   
5. Add the Name.
6. Add the Cost Rate. This is captured as a dollar amount.
7. Add the Basis (optional).
8. Add the Number of Trips. This is captured as a number.
9. Add the Quantity. This is captured as a number. (e.g. number of plane tickets)
10. Click Create.