Paycheck Protection Program Loan Calculator

What This Calculator Does

This calculator estimates the maximum loan amount you may qualify for under the Paycheck Protection Program (PPP). It uses your reported payroll costs and eligible non-payroll expenses to provide a preliminary loan figure. The result is intended to help you plan and prepare before submitting a formal application through an SBA-approved lender.

How the PPP Loan Amount Is Calculated

The PPP loan calculation is based on a formula established by the SBA. The core logic is straightforward:

• Average monthly payroll costs are calculated from the annual or monthly payroll figure you enter.
• This average is then multiplied by 2.5 to determine the base loan amount.
• For businesses in the accommodation and food services sector (NAICS codes starting with 72), the multiplier is 3.5 instead of 2.5.
• The result is capped at $10 million.

This calculator applies these rules automatically based on your inputs.

What Counts as Payroll Costs

Eligible payroll costs typically include:

• Salary, wages, commissions, and tips (capped at $100,000 annualized per employee)
• Employee benefits including health insurance, retirement contributions, and paid leave
• State and local payroll taxes
• Payments to independent contractors (if applicable under program rules)

Non-payroll costs such as rent, mortgage interest, utilities, and covered operations expenditures may also be included in your total eligible expenses, but the loan amount is primarily driven by payroll.

How to Use the Calculator

1. Enter your payroll amount — choose whether you are entering a monthly or annual figure.
2. Select your industry — if your business is in the accommodation or food services sector, select the appropriate option to apply the correct multiplier.
3. Add eligible non-payroll expenses (optional) — include rent, utilities, mortgage interest, or other qualifying costs if you want to see a more complete picture.
4. Review the estimated loan amount — the calculator will display your preliminary figure based on the inputs provided.

Understanding Your Results

The result shown is an estimate only. It reflects the maximum loan amount under standard PPP rules based on the information you entered. The actual loan amount you receive will depend on:

• Verification of your payroll records by your lender
• Compliance with SBA eligibility requirements
• Availability of funds at the time of application
• Any program changes or updates from the SBA

Use this estimate as a planning tool, not as a guarantee of approval or funding.

Common Mistakes to Avoid

• Including payroll above the $100,000 cap — only the first $100,000 of annual compensation per employee counts toward the calculation.
• Using gross payroll instead of eligible payroll — certain items like federal payroll taxes are excluded.
• Selecting the wrong industry multiplier — only businesses with NAICS codes starting with 72 qualify for the 3.5x multiplier.
• Overestimating non-payroll expenses — non-payroll costs cannot exceed 40% of the total loan amount for forgiveness purposes.

Limitations of This Calculator

This calculator does not account for every variable that may affect your final loan amount. It does not:

• Verify your eligibility for the program
• Calculate loan forgiveness amounts
• Account for seasonal employer adjustments or alternative covered periods
• Include second-draw PPP loan rules or subsequent program changes

Always consult with a qualified lender or financial advisor for a formal assessment.

Practical Use Cases

• Business planning — estimate potential funding before starting the application process.
• Cash flow forecasting — understand how a PPP loan might support payroll and operating expenses.
• Lender preparation — have a preliminary figure ready when discussing options with your bank.
• Scenario comparison — test different payroll figures to see how they affect the loan amount.