FINANCIAL CALCULATORS
Paycheck Protection Program Calculator
Estimate your PPP loan amount and forgiveness eligibility.
What is the Paycheck Protection Program Calculator & How does it work?
The Paycheck Protection Program (PPP) is a federal initiative aimed at helping small businesses maintain their payroll during the COVID-19 pandemic. This calculator helps you estimate the amount of PPP loan you might be eligible for based on your business’s needs.
To qualify, your business must have been operational before February 15, 2020, and meet certain size requirements. The forgiveness amount is determined by the lesser of two calculations: (a) the sum of all covered payroll costs during an eight-week period beginning on the date the loan is disbursed or (b) two and a half times the average monthly payroll for the one-year period preceding the loan origination.
To qualify, your business must have been operational before February 15, 2020, and meet certain size requirements. The forgiveness amount is determined by the lesser of two calculations: (a) the sum of all covered payroll costs during an eight-week period beginning on the date the loan is disbursed or (b) two and a half times the average monthly payroll for the one-year period preceding the loan origination.
Loan Amount = 2.5 * Average Monthly Payroll
Average Monthly Payroll = Total Payroll for the Previous Year / 12
Parameters
Estimated PPP Loan Amount—
Frequently Asked Questions
What are the main criteria to qualify for PPP?
To qualify, your business must have been operational before February 15, 2020, and meet certain size requirements.
How is the forgiveness amount determined?
The forgiveness amount is the lesser of two calculations: (a) the sum of all covered payroll costs during an eight-week period, or (b) 2.5 times your average monthly payroll for the year prior to applying.
What types of expenses are eligible for PPP loan forgiveness?
Eligible expenses include payroll costs, mortgage interest, rent, utilities, and certain supplier payments.
Can I use PPP funds for non-payroll expenses?
Yes, you can use up to 25% of the loan amount for eligible non-payroll expenses like rent, utilities, and mortgage interest.
How long do I have to spend the PPP funds?
You must spend the PPP funds within eight weeks from receiving the loan to be considered for forgiveness.
What happens if I don't use all the PPP funds by the end of 8 weeks?
If you don't spend all the funds, only the amount spent on eligible expenses will be forgiven. The remaining balance must be repaid.
Can self-employed individuals apply for PPP?
Yes, self-employed individuals and independent contractors can apply for PPP, but they are considered sole proprietors or members of a multi-member LLC.
Results are for informational purposes only and do not constitute professional advice.