PPP Loan Calculator — Paycheck Protection Program Estimator
Estimate the maximum PPP loan your business could have received under CARES Act rules (2.5× standard or 3.5× for food/accommodation), and see how much is eligible for forgiveness based on your planned payroll and non-payroll spending split.
Industry type
%
Average monthly payroll × 2.5× multiplier (capped at $10 million)
$50,000
Total loanForgiven
100%
Unforgiven balance
0%
- 1
PPP multiplier
2.5× (standard) = 2.5 - 2
Estimated loan amount
20,000 × 2.5 = 50,000Capped at $10,000,000 per SBA rules.
How does this calculator work?
PPP loan = avg monthly payroll × 2.5× (most businesses) or 3.5× (food/accommodation), capped at $10M. Spend ≥ 60% on payroll for full forgiveness. The program closed May 2021; figures are 2020–2021 CARES Act rules and are provided for reference only.
Formula
How this is calculated
The Paycheck Protection Program, created by the CARES Act of 2020 and modified by the PPP Flexibility Act, provided forgivable SBA-backed loans to help small businesses (≤ 500 employees) retain workers during the COVID-19 pandemic. The program closed on May 31, 2021. This calculator uses the official first-draw loan formula as a reference for record-keeping, forgiveness applications, or educational purposes.
The maximum loan equals 2.5 times average monthly payroll costs for most businesses, or 3.5 times for NAICS sector 72 (accommodation and food services). Monthly payroll is typically the average over the 12 months before application, or the entire period for businesses under a year old. Payroll costs include wages, salaries, tips, group health insurance, retirement contributions, and state/local payroll taxes, but exclude annual compensation above $100,000 per employee. The absolute cap is $10 million per loan.
Forgiveness is available for the portion of the loan spent on eligible expenses during the 8- or 24-week covered period. The PPP Flexibility Act reduced the minimum payroll spend for full forgiveness from 75% to 60%. If payroll spend falls below 60%, only a partial amount is forgiven — equal to payroll costs divided by 0.6. Any unforgiven balance converts to a loan at 1% annual interest, repayable over 2 or 5 years.
Frequently asked questions
No. The PPP closed to new applications on May 31, 2021. This calculator is for reference, forgiveness calculations, or understanding what loan amount your business was eligible for.
Payroll costs include gross wages and salaries (capped at $100,000/employee annualized), tips, vacation/sick/parental leave, group health insurance premiums, retirement plan contributions, and state/local payroll taxes. Federal payroll taxes and individual employee pay above $100,000 are excluded.
Any balance not forgiven becomes a conventional SBA loan at 1% annual interest. Loans issued before June 5, 2020 have a 2-year maturity; those after have a 5-year maturity. Borrowers make monthly principal and interest payments.
Also known as
TG we-Calculate Editorial Team. (2026). PPP Loan Calculator — Paycheck Protection Program Estimator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/paycheck-protection-program-calculator
TG we-Calculate Editorial Team. "PPP Loan Calculator — Paycheck Protection Program Estimator." TG we-Calculate. 2026. https://we-calculate.com/calculator/paycheck-protection-program-calculator.
TG we-Calculate Editorial Team, "PPP Loan Calculator — Paycheck Protection Program Estimator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/paycheck-protection-program-calculator
@misc{wecalculate_paycheck_protection_program_calculator, title = {PPP Loan Calculator — Paycheck Protection Program Estimator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/paycheck-protection-program-calculator}}, year = {2026}, note = {TG we-Calculate} }
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