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Indirect Rate Formula

How to Calculate Your Provisional Billing Rate (PBR), Simplified

September 24, 2025 by Vik Singh

Formula for calculating Provisional Billing Rates (PBR) showing projected indirect costs divided by allocation base for DCAA compliance.

GovCon Wednesday’s A Step-by-Step ApproachEstimated Read Time: 8 minutes If you’ve followed along with our GovCon indirect rate series, you already know what a Provisional Billing Rate (PBR) is and why it’s essential. Now let’s get into the how. PBRs aren’t just paperwork they’re a core component of your cash flow strategy. Calculating your rates accurately ensures you’re billing in line with FAR 42.704, avoiding audit flags, and recovering real costs without… Read More

Filed Under: PBR Tagged With: Cost Allocation, DCAA Compliance, FAR 42.704, Fringe Rate, G&A Rate Calculation, GovCon Accounting, Indirect Rate Formula, Overhead Rate, PBR Calculation, Provisional Billing Rates

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