NIH Modular Budget: Rules, Justification, and a Worked Example
Modular budgets keep NIH reviewers focused on the science rather than line items. They are simpler to submit, but you still need a careful internal budget to choose the right number of modules.
This guide covers when a modular budget applies, how to size it, and what each justification must contain.
When to use a modular budget
- Research grant applications (such as R01, R03, R21, and R15) requesting $250,000 or less in direct costs per budget period.
- Consortium F&A does not count toward the $250,000; it is entered separately.
- Domestic organizations only. Foreign organizations use the detailed R&R budget.
- Not for applications above the threshold, or where the funding opportunity requires a detailed budget.
How modules work
Request direct costs in $25,000 increments, up to ten modules per budget period. NIH expects the same number of modules each year, and future-year escalations are not allowed, so build cost increases into your module count and explain any year-to-year variation.
Start with a detailed internal budget covering salary (within the salary cap), fringe, supplies, travel, and other costs, then round up to the next full module. Your sponsored programs office will usually want that internal budget even though NIH does not.
Worked example
| Step | Amount |
|---|---|
| Internal estimate of direct costs, excluding consortium F&A | $212,400 per year |
| Round up to full $25,000 modules | 9 modules = $225,000 |
| Consortium F&A for a subaward (entered separately) | $12,000 |
| Total direct costs shown on the form | $237,000 |
F&A is calculated on your MTDC base, which leaves out equipment, tuition remission, and the portion of each subaward above the first $25,000.
The three justifications
| Justification | Include | Leave out |
|---|---|---|
| Personnel | Every person's name, role, and effort in person-months | Individual salaries |
| Consortium | Estimated total consortium costs (direct plus F&A) per year, rounded to the nearest $1,000; each collaborating organization and whether it is foreign; consortium personnel with roles and effort | Individual salaries |
| Additional narrative | Reasons for variation in modules, excluded costs such as equipment or tuition, off-site work, and Data Management and Sharing costs | Anything already covered elsewhere |
Modular vs. detailed budgets
| Modular | Detailed (R&R) | |
|---|---|---|
| Direct cost limit | Up to $250,000 per year, excluding consortium F&A | Any amount (over $500,000 per year needs prior agreement from the institute) |
| Format | $25,000 modules | Itemized by category |
| Justification | Personnel, consortium, and additional narrative | Full budget justification for every category |
| Organizations | Domestic only | Domestic and foreign |
Common pitfalls
- Ignoring the salary cap or graduate student compensation limit when estimating modules.
- Varying the number of modules from year to year without explaining why.
- Counting consortium F&A toward the $250,000 limit; it is entered separately.
Build a detailed internal budget, round up to whole $25,000 modules, keep the count steady from year to year, and explain anything that varies.
Frequently asked questions
What is an NIH modular budget?
A simplified budget format that requests direct costs in $25,000 modules rather than itemized categories, for applications requesting $250,000 or less in direct costs per year.
What is the maximum for a modular budget?
$250,000 in direct costs per budget period, or ten modules, not counting consortium F&A.
Can the number of modules change between years?
Yes, but NIH expects the same number each year, with no escalation. Explain any variation in the additional narrative justification.
Do modular budgets need a budget justification?
Not a detailed one. You submit a personnel justification, a consortium justification if there are subawards, and an additional narrative justification when needed.
Can foreign organizations use a modular budget?
No. Foreign organizations must use the detailed R&R budget form.
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