2 Percent

How to Calculate 2% Direct-Charged Effort on Sponsored Projects (APM 45.22) 

1) Convert faculty salary from annual to monthly by dividing the contract salary amount by the number of months in the contract year.

2) Multiply the monthly salary by the number of months proposed for the project period.

3) Multiply the resulting amount by 2% and calculate fringe to correspond. 

Examples:

PI #1:     Academic year salary $81,000; project duration six months

                $81,000/9 = $9,000/month

                $9,000/month * 6 months = $54,000

                $54,000 * 0.02 = $1,080 direct charge to project 

PI #2:     Fiscal year salary $81,000; project duration six months

                $81,000/12 = $6,750/month

                $6,750/month * 6 months = $40,500

                $40,500 * 0.02 = $810 direct charge to project 

PI #3:     Academic year salary $81,000; project duration three years

                $81,000/9 = $9,000/month

                $9,000/month * 36 months = $324,000

                $324,000 * 0.02 = $6,480 direct charge to project

Effort Calculator