Paycheck Protection Program Calculator - Loan & Forgiveness Estimate

A Paycheck Protection Program calculator estimates a historical loan amount from average monthly payroll and models how much of an approved PPP balance may have qualified for forgiveness. PPP ended for new applications on May 31, 2021, so this page reviews prior loans and covered-period rules. It is not an application, eligibility decision, or lender determination.

• • Review a prior loan: Compare an approved First Draw or Second Draw amount with its payroll-based estimate and record the borrowing assumptions.
• • Rebuild a forgiveness worksheet: Separate payroll, rent, utilities, mortgage interest, and later eligible costs to see which ceiling limits the estimate.
• • Test staffing and wage scenarios: Change the FTE retention quotient or salary-reduction penalty to model workforce and pay changes.
• • Prepare a records discussion: Use the category breakdown as a checklist before reviewing payroll reports, invoices, leases, statements, and lender correspondence.

This Paycheck Protection Program calculator shows how payroll drives the estimate; approved principal and covered-period spending drive forgiveness.

If you are reviewing a separate SBA disaster loan that must be repaid rather than forgiven, compare its terms with our Economic Injury Disaster Loan Calculator.

The historical sequence is: estimate the loan, total covered-period costs, apply the payroll ceiling, subtract the salary penalty, and apply the FTE quotient.

• Average monthly payroll: Payroll base used for the historical loan estimate.
• Multiplier: 2.5 for the standard calculation, or 3.5 only for an eligible Second Draw borrower in NAICS sector 72.
• Eligible spending: Payroll plus qualifying non-payroll categories paid or incurred during the covered period.
• FTE quotient: A value from 0 to 1 representing the applicable full-time-equivalent headcount adjustment.

The historical sequence is: estimate the loan, total covered-period costs, apply the payroll ceiling, subtract the salary penalty, and apply the FTE quotient. This mirrors the order represented by the forgiveness worksheet inputs without pretending to reproduce every employee-level line.

The payroll-rule cap models the requirement that at least 60% of the forgiven amount be supported by payroll. With zero payroll, the cap is zero even when other spending is entered. A salary penalty above preliminary forgiveness is clamped to zero before the FTE quotient is applied.

According to U.S. Small Business Administration, How to Calculate First Draw PPP Loan Amounts, borrowers generally determine the maximum loan by multiplying average monthly payroll costs by 2.5, subject to the program's historical limits.

According to U.S. Small Business Administration, Form 3508 Loan Forgiveness Application and Instructions, the modified total subtracts salary or wage reductions, applies the FTE reduction quotient, and is compared with the PPP loan amount and payroll costs divided by 0.60.

For a conventional fixed-rate borrowing scenario rather than a historical PPP rule model, use the Loan Calculator to compare principal, interest, and repayment costs.

Four concepts explain why the estimate may differ from the amount borrowed or spent.

Later rules added operations, supplier, property-damage, and worker-protection categories. Form 3508 and Form 3508S had different workflows; a category does not establish eligibility. Timing, purpose, insurance, contracts, and rule version mattered.

The 3.5 multiplier is conditional. Choosing NAICS 72 for a First Draw does not change it because the higher factor was a Second Draw feature. Compare results with the loan documents and applicable instructions.

To compare this historical program with ordinary business financing, use the Business Loan Calculator with the proposed principal and rate.

Enter figures from historical loan and forgiveness records, then change one assumption at a time to see which limit controls.

1. 1 Choose the draw: Select First Draw or Second Draw. Mark NAICS 72 only when the historical borrower was in the accommodation or food services sector and the loan was a qualifying Second Draw.
2. 2 Enter monthly payroll: Use the payroll base from the relevant historical period to produce a 2.5x or conditional 3.5x maximum loan estimate.
3. 3 Enter the approved loan: Use the approved or disbursed amount, not the maximum estimate, because forgiveness cannot exceed the approved balance.
4. 4 Add covered-period costs: Enter payroll and qualifying non-payroll expenses separately. Leave a category at zero when it does not apply or cannot be supported.
5. 5 Apply workforce adjustments: Enter the FTE retention quotient and salary-reduction penalty from the applicable forgiveness worksheet.
6. 6 Read the controlling result: Compare preliminary, FTE-adjusted, and final amounts. The smallest ceiling identifies what limits modeled forgiveness.

For a restaurant with $20,000 average monthly payroll, a qualifying Second Draw, and NAICS 72, the maximum estimate is $70,000. If approved principal is $70,000, spending is $49,000, the FTE quotient is 0.90, and the salary penalty is $1,000, modeled forgiveness is $43,200.

For any balance that remains after forgiveness review, use our Loan Repayment Calculator to model regular installments and interest.

A category-by-category worksheet makes the historical rule sequence easier to review than one total.

• • Separates loan size from forgiveness: Shows whether average payroll supports the original borrowing estimate without confusing it with approved principal.
• • Shows the controlling ceiling: Places spending, approved principal, and the payroll cap side by side so the limiting amount is visible.
• • Tests workforce scenarios: Models the effect of an FTE quotient or wage penalty before you complete the detailed forgiveness worksheet.
• • Organizes supporting records: Keeps payroll and non-payroll categories separate for comparison with invoices, statements, leases, and payroll reports.
• • Preserves the historical frame: Keeps First Draw, Second Draw, NAICS 72, and 2021 rule language visible so the page is not mistaken for a current funding application.

If the lender leaves a principal balance, the Loan Balance Calculator helps separate the amount still owed from this forgiveness estimate.

The result depends on the rule version, documentation, and reductions that applied to the specific loan.

• • This is an informational historical estimate. It does not decide eligibility, verify records, apply every safe harbor, or replace lender review.
• • The tool accepts an FTE quotient and salary penalty supplied by the user. It does not calculate employee-level FTE averages, wage comparisons, owner compensation limits, or Schedule A worksheets.
• • PPP ended for new applications on May 31, 2021. For an existing loan, use the form and lender guidance tied to that loan; SBA currently says existing borrowers may still be eligible for forgiveness and can use its Direct Forgiveness Portal.

The 2021 Form 3508 instructions are the reference for this sequence, while Form 3508S may apply to qualifying smaller loans. Revisions matter, so keep the application, lender correspondence, and records together.

As of the SBA COVID-era programs page updated February 2, 2026, PPP is historical and not open for new applications. Existing borrowers may still have a forgiveness path through the lender or SBA portal; portal access does not change the original rules.

According to U.S. Small Business Administration, COVID-era programs, updated February 2, 2026, PPP ended on May 31, 2021, existing borrowers may still be eligible for forgiveness, and eligible borrowers can use the Direct Forgiveness Portal.

When a separate loan includes a payment pause or capitalized interest, the Deferred Payment Loan Calculator models that repayment effect without mixing it into PPP.