A grant budget lists what a project will cost and how much you are asking the funder to pay, organized into standard cost categories: personnel, fringe benefits, travel, equipment, supplies, contractual, other and indirect costs. This free template uses those federal-style categories, calculates fringe and indirect costs for you, pulls every total into a matching budget narrative, and includes a budget-vs-actual tab for after you win the award.
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Grant budget example
The example is a one-year request of $144,572 for a fictional food pantry's fresh food project. The organization contributes 10% of its executive director's time as an in-kind match, so the total project cost is $154,088.
| Category / line item | Basis of calculation | Qty | Unit cost | Total cost | Match (cash or in-kind) | Requested from funder |
|---|---|---|---|---|---|---|
| Personnel | ||||||
| Program Coordinator | 1.0 FTE x annual salary | 1 | 52,000.00 | 52,000 | - | 52,000 |
| Volunteer Coordinator | 0.5 FTE x annual salary | 0.5 | 44,000.00 | 22,000 | - | 22,000 |
| Executive Director (supervision) | 0.10 FTE x annual salary; in-kind match | 0.1 | 78,000.00 | 7,800 | 7,800 | - |
| Total personnel | 81,800 | 7,800 | 74,000 | |||
| Fringe benefits | ||||||
| Fringe benefits on salaries above | Fringe rate x personnel | 17,996 | 1,716 | 16,280 | ||
| Total fringe benefits | 17,996 | 1,716 | 16,280 | |||
| Travel | ||||||
| Local mileage for food pickups | 4,000 miles x reimbursement rate | 4,000 | 0.70 | 2,800 | - | 2,800 |
| Regional food security conference | 2 staff x registration, lodging, meals | 2 | 1,250.00 | 2,500 | - | 2,500 |
| Total travel | 5,300 | - | 5,300 | |||
| Equipment | ||||||
| Walk-in refrigeration unit | 1 unit; per-unit cost of $10,000 or more | 1 | 12,000.00 | 12,000 | - | 12,000 |
| Total equipment | 12,000 | - | 12,000 | |||
| Supplies | ||||||
| Laptops for program staff | 2 laptops (below equipment threshold) | 2 | 1,100.00 | 2,200 | - | 2,200 |
| Program supplies (bags, labels, sanitation) | 12 months x monthly cost | 12 | 400.00 | 4,800 | - | 4,800 |
| Total supplies | 7,000 | - | 7,000 | |||
| Contractual | ||||||
| Program evaluation consultant | Fixed-fee contract | 1 | 6,000.00 | 6,000 | - | 6,000 |
| Outsourced bookkeeping (grant share) | 12 months x monthly fee | 12 | 350.00 | 4,200 | - | 4,200 |
| Total contractual | 10,200 | - | 10,200 | |||
| Other | ||||||
| Printing of outreach materials | Flyers and signage in English and Spanish | 1 | 1,500.00 | 1,500 | - | 1,500 |
| Volunteer background checks | 40 volunteers x per-check fee | 40 | 25.00 | 1,000 | - | 1,000 |
| Total other | 2,500 | - | 2,500 | |||
| TOTAL DIRECT COSTS | 136,796 | 9,516 | 127,280 | |||
| Indirect cost base: requested direct costs minus equipment and exclusions | 115,280 | |||||
| Indirect costs | ||||||
| Indirect costs (rate x base) | 17,292 | - | 17,292 | |||
| TOTAL PROJECT BUDGET | 154,088 | 9,516 | 144,572 |
Grant budget categories, with example line items
Personnel
Salaries and wages for staff who work on the project, shown as each person's annual salary times the share of their time on the project (full-time equivalent, or FTE). Example: Program Coordinator, 1.0 FTE x $52,000 = $52,000. Include only time actually spent on the project, and be ready to document it with timesheets or other time records.
Fringe benefits
Employer payroll taxes, health insurance, retirement contributions and workers' compensation for the personnel above, usually calculated as a percentage of salaries. The template applies one rate (22% in the example) to the personnel total. If you have a federally negotiated fringe rate, use it.
Travel
Mileage, airfare, lodging, meals and conference registration for project staff. Show the math, such as 4,000 miles x $0.70 per mile. Federal awards generally follow your own written travel policy, and many organizations reimburse mileage at the IRS standard rate, so check the current year's rate.
Equipment
Items with a per-unit cost at or above your capitalization threshold and a useful life of more than one year. For federal awards, the threshold is $10,000 per unit or your organization's lower threshold; the 2024 update to the Uniform Guidance raised it from $5,000. Example: a walk-in refrigeration unit, $12,000.
Supplies
Items below the equipment threshold, including computers and software under the threshold, and consumables. Example: two laptops at $1,100 each, plus $400 a month in program supplies.
Contractual
Payments to consultants, contractors and subrecipients. Example: an independent evaluator for a fixed fee of $6,000. For federal awards, note whether each is a contractor or a subrecipient, because different rules apply, and only the first $50,000 of each subaward counts toward the indirect cost base.
Other
Costs that fit nowhere else, such as printing, background checks, participant incentives, software subscriptions, and rent for program space when it is a direct cost. Example: 40 volunteer background checks at $25 each.
Indirect costs
Shared costs that support the project but cannot easily be assigned to it, such as accounting, general oversight, insurance and office rent. Federal awards use your negotiated indirect cost rate or, if you do not have one, a de minimis rate of up to 15% of modified total direct costs (MTDC). MTDC leaves out equipment, rent, participant support costs and the portion of each subaward over $50,000. Foundations often set their own limit, so read the guidelines.
In the template, indirect costs are calculated on the requested direct costs minus equipment and any other exclusions you enter at the top of the budget tab.
How to write a budget narrative
The budget narrative, also called a budget justification, explains each number in plain words: what it buys, how you calculated it and why the project needs it. Reviewers use it to decide whether your costs are reasonable, so make every amount easy to trace back to the budget.
- Follow the budget's order and category names exactly.
- Show the calculation: quantity, unit cost and basis, such as "0.5 FTE x $44,000 annual salary."
- Connect each cost to a project activity or outcome.
- Explain anything unusual, such as a large equipment purchase or a rate above market.
- Identify matching funds and in-kind contributions and where they come from.
- Check that every number matches the budget. In the template, amounts flow from the budget tab automatically.
Sample budget narrative
Here are three sections from the example's narrative:
Personnel ($74,000 requested). A full-time Program Coordinator ($52,000) runs daily distribution and client intake. A half-time Volunteer Coordinator ($22,000 for 0.5 FTE) recruits, schedules and trains about 120 volunteers. The Executive Director will spend 10% of their time supervising the project; this $7,800 is contributed by the organization as an in-kind match.
Fringe benefits ($16,280 requested). Fringe benefits are calculated at 22% of salaries and include employer payroll taxes (7.65%), health insurance, retirement contributions and workers' compensation, based on our current actual rates.
Equipment ($12,000 requested). A walk-in refrigeration unit will let us accept fresh produce and dairy donations we currently turn away. A quote from a local vendor is attached.
Tracking budget vs. actual spending after the award
Once you are funded, compare actual spending with the budget at least quarterly, and monthly for large awards. The Budget vs Actual tab shows, for each category, the budget, actual spending to date, the amount remaining, the percent spent, and whether you are ahead of or behind pace given how much of the grant period has passed.
- Code spending to the grant. A separate class, fund or project code for each grant in your accounting system makes the monthly update a two-minute job.
- Look at pace, not just totals. Halfway through the grant period with 20% of personnel spent usually means a hiring delay you should explain in your next report.
- Ask before you move money. Many funders, including some federal programs, require prior approval to shift more than 10% of the budget between categories. Check your award terms.
- Use the same categories in reports. Your interim and final financial reports should reconcile to the approved budget.
The extended version, free for your email, adds a monthly spending tracker and a three-year budget with salary escalation.
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Extended grant budget: three-year budget and monthly spending tracker. Enter your email and we will send you straight to the download.
- Multi-Year Budget
- Monthly Tracker
- Grant Budget, Narrative and Budget vs Actual
Frequently asked questions
What should a grant budget include?
Every cost of the project, grouped into categories (personnel, fringe benefits, travel, equipment, supplies, contractual, other and indirect costs), with the calculation for each line, the amount requested from the funder, any matching funds, and a total. Most proposals also need a budget narrative that explains each line.
Is there a simple grant budget template in Excel?
Yes. The template on this page is free for Excel and Google Sheets with no signup. Enter a quantity and unit cost for each line, and it calculates the totals, fringe benefits, indirect costs and the amount requested.
What is the difference between a grant budget and a budget narrative?
The budget is the numbers. The budget narrative, also called a budget justification, is the written explanation of how each number was calculated and why the project needs it.
What indirect cost rate should I use?
Use your federally negotiated rate if you have one. Otherwise, federal awards allow a de minimis rate of up to 15% of modified total direct costs. Foundations and state agencies often set their own limit, so use the lower of your actual rate and the funder's cap.
Can I use this template for a foundation grant?
Yes. Foundations usually want fewer categories and less detail than federal agencies. Keep the line-item detail for your own planning, then copy the category totals into the funder's budget form.
What is a grant budget vs. actual report?
A comparison of what you planned to spend with what you have actually spent, by category, at a point during the grant. Funders often ask for one with interim and final reports.