Grant Budget Guide

A skill for preparing realistic, well-justified research grant budgets. Covers common budget categories across major funding agencies (NSF, NIH, ERC, EPSRC, NSERC), cost estimation methods, budget justification writing, common mistakes that trigger reviewer concerns, and strategies for handling budget cuts during negotiation.

Budget Categories

Standard Budget Structure

Most funding agencies use similar budget categories, though terminology and rules vary. Understanding the universal structure helps when applying to any funder.

Standard Grant Budget Categories:

1. PERSONNEL (typically 50-70% of total)
   a. Principal Investigator (PI) salary + benefits
   b. Co-PI salary + benefits
   c. Postdoctoral researchers
   d. Graduate research assistants (stipend + tuition)
   e. Undergraduate assistants
   f. Research technicians / lab managers
   g. Administrative support (if justified)

2. EQUIPMENT (items > agency threshold, e.g., > $5,000)
   a. Major equipment purchases
   b. Fabrication costs
   c. Computer hardware (if specialized)
   Note: Standard office computers usually NOT allowed

3. TRAVEL
   a. Domestic conference travel
   b. International conference travel
   c. Fieldwork travel
   d. Collaboration visits
   e. Per diem and accommodation

4. MATERIALS AND SUPPLIES
   a. Lab consumables (reagents, chemicals, glassware)
   b. Software licenses
   c. Computing costs (cloud, HPC allocations)
   d. Participant incentives / compensation
   e. Printing, copying, publication charges

5. OTHER DIRECT COSTS
   a. Subcontracts / subawards
   b. Consultant fees
   c. Human subjects costs (IRB fees, participant payments)
   d. Publication fees (open access charges)
   e. Specialized services (sequencing, imaging, surveys)

6. INDIRECT COSTS (F&A - Facilities and Administration)
   a. Calculated as percentage of modified total direct costs
   b. Rate negotiated between institution and government
   c. Typical US university rate: 50-65% (on-campus)
   d. Some agencies cap indirect costs

Cost Estimation

Personnel Cost Calculation

Estimating personnel costs:

PI salary:
  Monthly salary = Annual salary / 12
  Person-months requested = Calendar months of effort
  Cost = Monthly salary x Person-months
  Benefits = Cost x Fringe benefit rate

  Example:
    Annual salary: $120,000
    Effort: 2 summer months (of 12 calendar months)
    Salary cost: $120,000 / 12 x 2 = $20,000
    Fringe benefits at 30%: $6,000
    Total PI cost: $26,000 per year

Postdoc salary:
  Check institution's postdoc salary scale
  NIH NRSA stipend levels provide a common benchmark
  Include annual raises (3-4% per year)
  Include full benefits (health insurance, retirement)

  Example (3-year project):
    Year 1: $56,000 + 30% fringe = $72,800
    Year 2: $57,680 + 30% fringe = $74,984
    Year 3: $59,410 + 30% fringe = $77,233
    Total: $225,017

Graduate student:
  Stipend (12 months): varies by institution ($25,000-$40,000)
  Tuition remission: often charged to the grant ($15,000-$50,000)
  Health insurance: $2,000-$5,000/year
  Total per student per year: $42,000-$95,000