Free Project Budget Template
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A budget that only shows one total is not a budget. It is a number. This Excel template splits cost by category and by phase, tracks planned against actual on every line, works out the variance for you and flags overspend. Contingency sits on its own lines, so you always know how much buffer is left.
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Quick answer
A project budget is the approved estimate of what a project will cost, broken down by category and phase. This free Excel template uses a phase-by-category matrix, tracks planned against actual for every line and calculates variance automatically, including contingency and management reserve.
If you only need a quick total with contingency and reserve, use my project budget calculator. This page is for the Excel template, when you need to track planned against actual line by line through the whole project. Below you will see how to fill it in, with a worked example.
How is the project budget template laid out?
The budget is a grid. Project phases go down the rows and cost categories go across the columns. You enter the planned amount in each cell, then add actuals as the project runs. Totals, variance and % used calculate at every level.
| Phase / Category | Cost Type | Planned ($) | Actual ($) | Variance ($) | % Used |
|---|---|---|---|---|---|
| 1.0 Initiation | 12,000 | 11,400 | 600 | 95% | |
| Labour | Internal | 8,000 | 7,800 | 200 | 98% |
| Consultancy | External | 4,000 | 3,600 | 400 | 90% |
| 2.0 Planning | 28,000 | 31,200 | −3,200 | 111% | |
| Labour | Internal | 16,000 | 18,500 | −2,500 | 116% |
| Software | CapEx | 8,000 | 8,200 | −200 | 103% |
| Consultancy | External | 4,000 | 4,500 | −500 | 113% |
| Contingency Reserve | Risk buffer | 25,000 | 8,000 | 17,000 remaining | 32% drawn |
| TOTAL (excl. contingency) | 180,000 | 96,400 | +3,200 ahead | 54% |
What are the six standard cost categories?
The template uses six categories that cover most project spending. Add or remove categories to match your finance team's codes. What matters is that you keep the same categories for the whole project, so actuals compare like for like with the plan.
What is the difference between contingency and management reserve?
The template has its own Contingency Reserve section, kept apart from direct costs. You need to know the difference between contingency and management reserve before you present the budget to your sponsor.
How Much Contingency to Set Aside
The right amount depends on your project's risks, not a fixed percentage. The sound method: work out the Expected Monetary Value (probability × impact) of each identified risk, add them up and use that total as your contingency. For a quick first guess, many PMs use 5 to 10% of direct costs for low-risk work, 10 to 20% for medium risk and 20% or more for high-risk or new kinds of work. Use the Project Budget Calculator to try different amounts before you finalise.
Example: budget lines for a small office move
Here is how a few lines look part-way through a simple office move. This is an example only, with round numbers to show how the columns work.
| Phase | Category | Planned (AED) | Actual (AED) | Variance |
|---|---|---|---|---|
| Prepare new office | Materials (furniture) | 120,000 | 126,000 | -6,000 (over, red) |
| Prepare new office | Consultancy (IT cabling contractor) | 45,000 | 42,000 | +3,000 (under, green) |
| Move weekend | Other (removal company) | 30,000 | 30,000 | 0 |
| Contingency reserve | Reserve for identified risks | 15,000 | 6,000 drawn | 9,000 remaining |
The 6,000 drawn from contingency is written against the risk it covered: a furniture price rise that was already in the risk register.
Mistakes I see when people fill this in
- Invoices instead of commitments. If you only enter costs when invoices arrive, you find the overspend months late. Track against purchase orders too.
- Contingency hidden in line items. Padding every line makes the budget hard to defend. Put contingency on its own line.
- Management reserve inside the BAC. It belongs to the sponsor and sits outside your baseline.
- Categories that change halfway. Then plan and actual no longer match up.
How This Budget Links to EVM
This budget is the starting point for earned value management. Once you see how the two connect, moving from budget planning to EVM tracking is easy.
The Budget Feeds EVM Directly
The Budget at Completion (BAC), the total planned project cost from the budget summary row, is the first input to the EVM Tracker. Once the project starts and you begin recording actuals in this budget template, those actual costs become the Actual Cost (AC) values in the EVM tracker. The planned spend by period from this template becomes the Planned Value (PV) schedule.
The budget answers "how much did we plan to spend, and how much have we spent?" The EVM tracker answers "for the work we have done, are we getting value for the money?" Together they give you the full picture: the budget shows your cash position, EVM shows your performance.
Project Budget: 4 Common Questions
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