GrantsManager

Grant Salary and Fringe Benefits Calculator

Quick answer
Grant salary for each person is base salary × percent effort, increased each year by your escalation rate. Fringe benefits are that requested salary × the person's fringe rate. Add the NIH salary cap for NIH budgets, since the cap limits the salary rate before effort is applied.
RoleBase salaryEffort %Fringe %
Total salary requested
$631,787
Total fringe benefits
$163,521
Salary + fringe
$795,309
5 years
YearSalaryFringeTotal
Year 1$119,000$30,800$149,800
Year 2$122,570$31,724$154,294
Year 3$126,247$32,676$158,923
Year 4$130,035$33,656$163,691
Year 5$133,936$34,666$168,601

Estimates for planning. Your institution's rates, policies, and the sponsor's terms govern.

How the calculation works

  • Requested salary = base salary × (1 + escalation)^(year − 1) × percent effort.
  • With the NIH salary cap on, the escalated base salary is limited to the cap before effort is applied.
  • Fringe benefits = requested salary × fringe rate, using the rate for that employee category.
  • Totals add every person across every budget year.

Choosing rates

Use your institution's approved fringe benefit rates, which usually differ by employee category: faculty, staff, postdoctoral researchers, and students. Many universities publish federally negotiated or approved fringe rates by fiscal year.

Escalation of 3% a year is common, but use your institution's planning rate. NIH modular budgets do not add inflationary escalation, so request a steady number of modules each year unless the work itself changes.

Worked example

PersonBase salaryEffortYear 1 salaryFringe rateYear 1 fringe
PI$180,00020%$36,00030%$10,800
Postdoc$65,000100%$65,00028%$18,200
Graduate student$36,00050%$18,00010%$1,800

Year 1 salary and fringe total $149,800. With 3% escalation, year 2 salaries rise to $122,570 before fringe.

Frequently asked questions

How do you calculate fringe benefits on a grant?

Multiply the salary charged to the grant by the fringe benefit rate for that employee category. A postdoc paid $65,000 at a 28% fringe rate adds $18,200 in fringe benefits.

What is a typical fringe benefit rate?

It varies by institution and employee type. Faculty and staff rates are often 25% to 35%, while student rates are much lower. Use your institution's published rates.

Should I include salary increases in a multi-year grant budget?

Usually yes, at your institution's planning rate, for detailed budgets. NIH modular budgets do not add inflationary escalation, so keep the module count steady unless the work changes.

Does the NIH salary cap apply to fringe benefits?

The cap limits the salary rate charged. Fringe is then calculated on the capped salary actually charged to the grant.

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