Grant Proposal Budget Example: SF-424A Math in 5 Steps

By Aoba Works · Published October 28, 2026 · 17 min read

How this guide was made: drafted with AI assistance from the official sources linked below, then passed an automated editorial check before publishing. Our process

• Budget Narrative
• Indirect Costs
• Federal Grants
• Nonprofits

A grant proposal budget example is useful when it shows two matching documents. One is a line-item budget: personnel, fringe, travel, equipment, supplies, contractual, other and indirect costs. The other is a budget narrative that explains how you got each number. Below is a worked one-year example that splits direct from indirect costs, applies the 15% de minimis rate to the correct base, and places every dollar on the matching line of the SF-424A and SF-424, so a reviewer can check the math. Swap in your own figures and your NOFO's rules, and you'll have a draft budget.

Which option is right for you?

Choose your starting point by the budget format your funder requires.

Reasons in one line each. The SF-424A is the most common federal budget form outside research. NIH's modular format hides line items from reviewers, so most of the effort goes into the personnel justification. NSF budgets use their own letters, which don't match SF-424A line numbers. JustGrants does the arithmetic for you. A spreadsheet catches errors before the form does. And the de minimis rate needs no rate agreement.

What Does a Grant Proposal Budget Example Actually Look Like?

A real grant budget example pairs a narrative with line-item numbers that map directly to SF-424A categories, so reviewers can trace every dollar. Section B of the SF-424A lists eight direct cost lines: 6a Personnel, 6b Fringe Benefits, 6c Travel, 6d Equipment, 6e Supplies, 6f Contractual, 6g Construction and 6h Other. Then come 6i Total Direct Charges (the sum of 6a–6h), 6j Indirect Charges and 6k Totals (6i + 6j). This layout comes from the official SF-424A instructions and the Department of the Interior's copy.

The example below is invented for illustration. It describes a nonprofit running a one-year workforce training project with a community college partner, and it has no negotiated indirect cost rate.

Notice that the indirect line isn't 15% of $244,484. The base excludes some costs (the next sections show which), and the narrative has to say so in writing. The per diem and mileage figures are placeholders. Use GSA per diem rates or your written travel policy, and name the source in the narrative.

There are two classic problems with budget samples you find online. First, they show a single total for "Staff" with no salary × effort math, and reviewers can't check that. Second, they apply the indirect rate to the full direct total. If you copy that, you'll overcharge, and the grants office will probably cut it during negotiation.

Research Proposal Budget Example: How Is It Different From a Project Budget?

Research budgets add categories like participant support costs, equipment and subawards, and they often need a separate budget justification beyond the summary form. They also use agency-specific forms instead of the SF-424A.

Here's an example of the salary cap in practice. A principal investigator earns $260,000 and puts 25% effort on an NIH award. You can request no more than $228,000 × 25% = $57,000 in salary, not $65,000. The $8,000 difference can't come from the grant. The University of Washington notes that salary above the cap has to be covered from other funds (UW Research). The cap of $225,700 still applies to awards issued October 1 through December 31, 2025 (NIH Salary Cap Summary) (as of October 2026; check the current NIH notice).

NIH modular budgets work differently from every other format here. You can request up to $250,000 in direct costs per year, in $25,000 modules, and you don't give a breakdown by category (NIAID; Pitt OSP). You still need an internal detailed budget to work out how many modules to ask for. NIH can request the detail later.

Research Proposal Budget Example PDF: Where to Find a Reliable Sample

Federal agencies and their institutes publish sample applications and budget justifications. Download a sample that matches your agency and award type, not a generic template.

These sources are reliable as of October 2026:

• NIAID sample applications: funded NIH applications posted with the awardees' permission. Some include budget justifications. One example is an SBIR Phase II renewal, 2R44AI098567.
• NIA sample applications: useful for training and career awards.
• Agency budget narrative templates for SF-424A programs, such as the ACF Budget Justification Narrative template, the ACL budget justification sample, the NOAA Office for Coastal Management template and the DOJ OVW sample budget detail worksheet.
• University sponsored-programs offices often post annotated samples. Treat them as format guides only, because the rates in them belong to that university.

How to judge a sample PDF:

1. Check the date and the rules it follows. Anything before October 1, 2024 reflects the older 2 CFR 200 thresholds: a 10% de minimis rate, a $5,000 equipment threshold and a $25,000 subaward cap in MTDC. The current rules are 15%, $10,000 and $50,000 (2 CFR 200.1; 2 CFR 200.414).
2. Check that it's the same form family. An NSF sample won't teach you SF-424A line numbers.
3. Copy the structure, not the numbers. Copy the heading order, the calculation style ("$52,000 × 100% × 12 months") and how the federal share is shown next to the non-federal share.

The Grants.gov forms repository warns that its PDF forms are "for sample purposes only and cannot be submitted," so the real form has to be filled out in Workspace (Grants.gov SF-424 family).

Project Proposal Budget Example: How to Structure Direct vs. Indirect Costs

Direct costs are itemized by category. Indirect costs are a percentage of a defined base, set by your negotiated rate agreement or by the de minimis rate. Under 2 CFR 200.414, organizations without a current negotiated rate may charge up to 15% of modified total direct costs (MTDC). They don't need documentation to use that rate, and they can keep using it indefinitely.

2 CFR 200.1 defines MTDC as "all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $50,000 of each subaward." It leaves out equipment, capital expenditures, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the part of each subaward over $50,000.

5 steps to build the split

1. List every cost and tag it Direct or Indirect. Use the way your accounting system already treats it. 2 CFR 200.403(d) says a cost can't be charged as direct if similar costs for the same purpose are treated as indirect. If the agency director's time is in your indirect pool, don't also bill 10% of it as personnel.
2. Classify the equipment. An item is equipment if it costs $10,000 or more per unit, or your lower capitalization threshold if you have one. Anything cheaper is a supply, and that includes computing devices (2 CFR 200.1). In the example, the $12,000 simulator is equipment and the $900 laptops are supplies.
3. Separate subawards from contracts. A subaward to a partner carrying out part of the program goes in the base only up to $50,000. A contract for services, such as the evaluator, goes in the base in full. In the example, $30,000 of the $80,000 college subaward drops out of MTDC.
4. Calculate MTDC in a single row. Example: $244,484 total direct − $12,000 equipment − $10,000 participant stipends − $30,000 subaward excess = $192,484.
5. Apply your rate, then round down. 15% × $192,484 = $28,872.60, which gives $28,872. Rounding down keeps you from going over the rate.

If you have a negotiated indirect cost rate agreement (NICRA), use its rate and its base. Some agreements use salaries and wages, or total direct costs, instead of MTDC. NSF says organizations without a NICRA have to submit a rate proposal to request more than the 15% de minimis rate (NSF). For how to make and document the election, see our guide to the 15% de minimis indirect cost rate.

One limitation: some NOFOs cap indirect costs below your rate, or don't allow them at all, under program statutes. The NOFO overrides your preference, so read its "Funding Restrictions" section before you plug in 15%.

Grant Proposal Budget Template vs. Grant Proposal Budget Template Excel: Which Should You Use?

Use a Word or PDF template for the narrative and an Excel workbook for the calculations. Grants.gov's SF-424A webform adds up rows and columns, but it doesn't check that your MTDC base is correct.

A simple workbook setup:

• Tab 1, Inputs: names, salaries, effort, fringe rate and indirect rate. Each value lives in one cell.
• Tab 2, Lines: one row per item with a formula. Example: =B4*C4 for salary × effort.
• Tab 3, SF-424A: eight category subtotals, then 6i =SUM(6a:6h), MTDC, 6j and 6k. These cells are the only ones you copy into the form.

If you submit across multiple years, add one column per budget period. Section B has columns (1) through (4) for different programs or activities, and the future-year amounts go in Section E (SF-424A instructions). Don't spread years across the Section B columns unless your NOFO tells you to.

Grant Proposal Budget Template Word: How to Format the Narrative Section

The Word budget narrative explains the "why" behind each spreadsheet line, in full sentences tied to project goals. Most NOFOs ask for it as a separate attachment.

Steps

1. Use the NOFO's headings and order. If the NOFO doesn't give an order, follow the SF-424A: Personnel, Fringe Benefits, Travel, Equipment, Supplies, Contractual, Construction, Other, Indirect. Put the line number in each heading, for example "6c. Travel – $4,624".
2. Write calculation, purpose, then basis for each item. Example: "Case Manager (to be hired), $52,000 × 100% × 12 months = $52,000. Conducts intake and coaching for 20 participants (Objective 1). Salary based on the organization's FY2026 pay scale."
3. Show both federal and non-federal shares if cost sharing applies. Those amounts must match SF-424A Section A column (f) and Section C.
4. State the indirect rate type and base in a single sentence. Example: "Indirect costs: 15% de minimis rate under 2 CFR 200.414(f) × MTDC of $192,484 = $28,872. MTDC excludes equipment ($12,000), participant support ($10,000) and the subaward amount above $50,000 ($30,000)." If you have a NICRA, name the cognizant agency, the agreement date and the base.
5. Save as PDF and attach it where the package asks. In Grants.gov Workspace, that's usually the Budget Narrative Attachment Form or Other Attachments Form. Click Add Attachment, then Save.

Pitfalls and fixes

• The narrative total doesn't match the form. Copy the final figures from the spreadsheet's SF-424A tab only after the numbers are locked.
• "TBD" or "miscellaneous" lines. Reviewers can't judge whether a cost is reasonable without a basis. Under 2 CFR 200.403(a), costs must be "necessary and reasonable." Give a quote, a catalog price or your policy rate.
• Ignoring the page limit. NSF caps the justification at five pages (NSF PAPPG). Other NOFOs set their own limits or count the narrative toward the total page limit.

For the rest of the application narrative, see How to Write Grants for Nonprofits: Federal Proposal Guide.

Grant Application Budget Example: How to Align It With the SF-424A/424 Form

Each narrative line item has to map to exactly one SF-424A category, and the SF-424A totals have to match item 18, "Estimated Funding," on the SF-424. If they don't, reviewers and grants management staff will flag the gap.

Steps in Grants.gov Workspace

1. Open your workspace, go to the Forms tab, find Budget Information for Non-Construction Programs (SF-424A) and click Webform.
2. In Section A – Budget Summary, enter the Assistance Listing number from the NOFO. For a new application, enter the federal request in column (e) and any cost share in column (f).
3. In Section B – Budget Categories, enter the eight category subtotals in column (1). Check that 6i equals the sum of 6a–6h and that 6k equals 6i + 6j.
4. Fill in Section C – Non-Federal Resources if you're contributing cost share, Section D – Forecasted Cash Needs (by quarter for the first year) and Section E for future budget periods.
5. In Section F – Other Budget Information, use line 22, Indirect Charges, to state the rate type, the rate and the base. Use line 23, Remarks, for anything else the reviewer needs.
6. Click Check for Errors, then Save. Open the SF-424 form and confirm that item 18a (Federal) and 18g (Total) match the SF-424A totals.

Mapping the example

Field-by-field help for the SF-424 is in our SF-424 instructions guide. Workspace only accepts submissions from an active SAM.gov registration, so confirm your status before you start (see the SAM.gov registration guides on this site).

Grant Writing Budget Example: Common Mistakes First-Time Applicants Make

The most common errors are totals that don't match between documents, missing fringe or indirect calculations, and costs the NOFO or 2 CFR 200 Subpart E doesn't allow. Here's each one with a fix.

Small businesses applying for SBIR/STTR have one more variable. Phase I and Phase II budgets often include a fee or profit line and caps set by the agency. Our SBIR guide covers that layer.

Next steps

You can have a draft budget ready today. Here's what to do.

DIY actions for today:

1. Open your NOFO and copy the budget section into a checklist: required forms, page limits, indirect cost limits, cost share and unallowable costs.
2. Build the three-tab spreadsheet described above, enter real salaries and quotes, and calculate MTDC with each exclusion on its own row.
3. Draft the Word narrative in SF-424A order using the "calculation, purpose, basis" pattern, then compare 6k against SF-424 item 18g.

If you'd rather not do it alone:

• SBA Small Business Development Centers (free). The network has about 63 lead centers and nearly 1,000 locations offering no-cost one-on-one counseling (CRS). It's a good fit for small business owners who want a second look at their numbers. It isn't a good fit for complex research budgets, and counselors won't write the application for you.
• Your university's sponsored programs office (no charge to faculty). If you're a researcher, this office has your NICRA, fringe rates and sign-off authority. Start there before you look anywhere else.
• The Grantsmanship Center's paid courses. "Competing for Federal Grants" costs $1,495 per person, or $1,395 with early registration. The 5-day Grantsmanship Training Program costs $1,195 plus a $45 textbook (TGCI; TGCI GTP) (as of October 2026; check the official page). The courses suit nonprofit staff who will apply year after year. They're not worth it if you're submitting one application this month: a course takes days, and your deadline won't move.
• An independent grant consultant. Fees vary widely, so get a written scope and quote. Make sure the consultant knows that your organization stays responsible for every number certified on the SF-424.

Related guides on this site:

• Federal Government Grant Application Guide: Small Business
• Indirect Cost Rate De Minimis: 15% Election in 4 Steps
• SF-424 Instructions: Field-by-Field Table and Steps (2026)
• Grants.gov Workspace: Create and Submit in 5 Steps (2026)

FAQ

What is a good grant proposal budget sample to follow?

Use a sample from the agency you're applying to. Examples include the ACF or ACL budget justification templates for HHS programs, NIAID sample applications for NIH, and the DOJ sample budget narrative for Justice grants. Check that it's dated after October 1, 2024, so it uses the current 15% de minimis rate, the $10,000 equipment threshold and the $50,000 subaward cap.

Is there an official grant proposal budget template?

For most non-research federal grants, the SF-424A is the official budget form. You fill it in through Grants.gov Workspace and attach a narrative in the format the NOFO describes. NSF, NIH and DOJ each use their own budget forms instead.

What should a research proposal budget example include?

It needs personnel with effort levels, fringe, equipment, travel, participant support, other direct costs (including subawards) and indirect costs at your negotiated rate. For NIH, also apply the salary cap of $228,000 as of 2026. For NSF, keep the justification to five pages.

How do I make a grant application budget example match the SF-424?

Put the SF-424A total from 6k (or Section A line 5) in SF-424 item 18a for the federal share. Put any cost share in 18b–18e and make sure 18g equals the overall total. Before you submit, run Check for Errors on both forms in Workspace.

Sources

• SF-424A Instructions (Grants.gov, OMB 4040-0006)
• SF-424A Instructions (U.S. Department of the Interior copy)
• Grants.gov SF-424 Family Forms Repository
• 2 CFR 200.1 Definitions (Cornell LII)
• 2 CFR 200.403 Factors affecting allowability of costs
• 2 CFR 200.414 Indirect costs (eCFR)
• 2 CFR 200.414 (Cornell LII)
• 2 CFR 200.423 Alcoholic beverages
• 2 CFR 200.442 Fundraising and investment management costs
• 2 CFR 200.450 Lobbying
• NSF: Preparing Your Proposal Budget
• NSF PAPPG Chapter II: Proposal Preparation Instructions
• NIAID: When a Modular Budget Is Right for You
• NIAID Sample Applications
• NIAID sample application 2R44AI098567
• NIA Sample Applications
• University of Pittsburgh OSP: NIH Modular Budgets
• University of Tennessee: NIH Modular Sample Justification
• University of Washington: NIH Executive Level II Salary Cap 2026
• NIH Grants Policy: Salary Cap Summary (FY 1990 – Present)
• ACF Budget Justification Narrative Template
• ACL Budget Justification Sample Template
• NOAA Office for Coastal Management Budget Justification Template
• DOJ OVW Budget Information and Sample Budget Detail Worksheet
• JustGrants: How to Complete a Budget
• JustGrants OJP Web-Based Budget Job Aid
• GSA Per Diem Rates
• CRS: The SBA's Small Business Development Centers Program
• The Grantsmanship Center: Competing for Federal Grants
• The Grantsmanship Center: Grantsmanship Training Program

Spotted something out of date or wrong? Tell us at shigoto.ai.note@gmail.com. Guides are re-checked against official sources on a rolling schedule.