In Excel: use =INDIRECT(ref_text) to turn text into a cell or range reference, for example =INDIRECT("B"&A2) returns the value from the row number stored in A2.
On this page7
Build the reference as text, including sheet names and exclamation marks when needed.
Wrap sheet names in apostrophes when they may contain spaces.
Pass the finished text to INDIRECT.
Use normal references or XLOOKUP instead when a non-volatile formula can solve the same problem.
What this does
INDIRECT converts a text string into a live reference. It is useful for dynamic sheet names, selectable ranges and references assembled from cells. The tradeoff is important: INDIRECT is volatile, can slow large workbooks, and does not update references when source ranges are moved the way normal references do. Most people learn this as a sequence of clicks and forget it by next week; learning it as a pattern instead is what lets you apply it to the next, slightly different version of the problem without starting from scratch. That is the difference this page is trying to make. Treat “calculate indirect cost rate excel” as a small repeatable workflow rather than a one-off click you hope to remember next time. Use a small test block before the live file, so any surprise in the affected cells shows up while it is still harmless. When a formula is involved, keep the inputs labelled beside it, reference cells instead of typing values, and apply number formatting only after the result checks out. That turns a workflow that saves repeating the same clicks every week into a method you can reuse, explain, and defend when the workbook leaves your screen.
A worked example
A2 contains 10. =INDIRECT("B"&A2) reads B10. If B10 contains 450, the formula returns 450. For a monthly model, =INDIRECT("'"&E1&"'!B5") can pull B5 from the sheet named in E1, such as Jan or Feb. INDIRECT is powerful for dynamic references, but it should be a deliberate choice because it trades flexibility for workbook fragility and recalculation cost. Check the referenced cells, argument order and result type in your workbook. Start with the worked example before changing an input, then compare the changed result with the calculation you expected. An error value or a result of a different type is a reason to inspect the inputs and arguments.
In Google Sheets
Google Sheets support for this task has not been verified. Check the function, arguments and workflow in the target product before transferring the example. Matching formula notation does not establish identical behaviour. Nothing on this page is behind a login or a download: the exact answer is at the top, and the detail below it is there for when you need it. That is the whole promise here — the answer first, and just enough context to make it stick. For “calculate indirect cost rate excel”, keep the input cells and the result visible while you check the formula in Excel. Follow the worked example and change one input at a time. The steps explain the workbook calculation; this page does not run a live calculator for that task.
Common mistakes
- Using
INDIRECTacross many rows and slowing recalculation. - Forgetting apostrophes around sheet names with spaces.
- Expecting references inside
INDIRECTto update after rows, columns or sheets are renamed. - Using it for simple lookups where
INDEX,XLOOKUPor structured references are safer.
Frequently asked questions
What does INDIRECT do?
It turns text such as "A1" or "'Jan'!B5" into an actual reference.
Why is INDIRECT slow?
It is volatile, so it recalculates whenever the workbook recalculates.
Does INDIRECT work with closed workbooks?
In Excel, INDIRECT generally needs the referenced external workbook open.
Other ways people ask this
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Why do people search for this in so many different ways?
Because the same task has many names. “calculate indirect cost rate excel formula”, “how to calculate indirect cost rate percentage excel formula”, “indirect cost rate excel formula” all point at the one operation explained on this page, which is why they all lead here.