Free PPP loan calculator. Estimate historical PPP loan amounts, per-employee allocation, and forgiveness math for legacy Paycheck Protection Program borrowers.
The Paycheck Protection Program (PPP) Calculator is a historical reference tool for legacy PPP borrowers. It estimates loan size and forgiveness math using the published SBA PPP framework for first-draw and second-draw loans. Enter employee count, average payroll, covered period length, and payroll spending to see how the old program rules affect the result.
PPP loan size is based on 2.5× average monthly payroll, or 3.5× for certain restaurant and hospitality businesses, with a per-employee compensation cap of $100,000 per year. Forgiveness depends heavily on how much of the loan is spent on payroll during the covered period, so the calculator shows both the loan ceiling and the payroll-spend threshold side by side.
The scenarios table helps compare first-draw and second-draw assumptions, partial forgiveness, and the effect of an EIDL advance. The PPP itself ended on May 31, 2021, so this page should be used for archival understanding, legacy-loan review, or forgiveness planning for existing borrowers rather than as a live application tool.
PPP rules combined caps, multipliers, covered-period timing, and payroll-spend thresholds, so a quick hand calculation could miss a limiting assumption. This calculator keeps the loan-size logic and the forgiveness logic in one place, which makes it easier to review legacy loans and forgiveness scenarios without pretending the program is still open for new borrowing.
Capped Payroll = min(Avg Monthly, $8,333.33) × Employees Max Loan = Capped Payroll × Multiplier − EIDL Advance Forgiveness = 100% if ≥60% on payroll; otherwise prorated Unforgiven Balance = Loan − Forgiveness (repaid at 1% over 5 years)
Result: Max loan: $150,000, Full forgiveness eligible
Capped monthly: $60,000 (15 × $4,000). Loan: $150,000 (× 2.5). At 75% payroll spend ($112,500): exceeds 60% threshold → full forgiveness.
The PPP loan formula starts with your average monthly payroll, caps each employee at $8,333.33/month ($100K/year), multiplies by 2.5 (or 3.5 for restaurants), and subtracts any EIDL advance received. Self-employed individuals use net self-employment income from Schedule C, divided by 12, multiplied by 2.5.
The key to full forgiveness is the 60% payroll threshold. Businesses should prioritize payroll spending during the covered period. If you choose a 24-week covered period (vs. 8 weeks), you have more time to reach the 60% mark. Track spending weekly to ensure you're on pace.
PPP Second Draw required businesses to demonstrate a qualifying revenue decline and applied a lower maximum loan size than the original first-draw program. This page keeps those historical distinctions visible because they still matter when reviewing legacy PPP files or forgiveness assumptions, even though no new PPP loans can be originated.
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This page reconstructs the historical PPP loan-size and forgiveness framework for legacy borrowers. It caps monthly payroll per employee at $8,333.33, multiplies eligible payroll by 2.5x or 3.5x depending on the selected historical scenario, subtracts any entered EIDL advance, and then compares payroll spending with the 60% payroll threshold used in the main forgiveness framework.
It is intentionally framed as a historical worksheet, not a live loan-application tool. The program closed on May 31, 2021, and actual forgiveness outcomes still depend on the borrower's lender, covered-period documentation, ownership-compensation rules, and SBA forgiveness review.
Historically, first-draw PPP loans were capped at $10 million and second-draw loans at $2 million. Both used average monthly payroll times a multiplier, with certain accommodation and food-service businesses eligible for a 3.5× factor instead of 2.5×.
At least 60% of PPP funds must be used for payroll costs during the covered period for full loan forgiveness. If less than 60% is spent on payroll, forgiveness is reduced proportionally.
Eligible legacy PPP loans can still be fully forgiven if the borrower meets the SBA forgiveness rules and submits the required documentation. This page summarizes the main payroll-spend threshold, but the lender and SBA forgiveness process controls.
Salary, wages, commissions, tips, vacation/sick/parental leave, health insurance, retirement contributions, and state/local payroll taxes. Owner compensation is included but capped.
Up to 40% can be used for rent, utilities, mortgage interest, operations expenditures, supplier costs, worker protection costs, and property damage from civil unrest. Those costs still have to fit the SBA rules for the covered period and documentation requirements. If payroll drops below the 60% threshold, forgiveness is reduced even if the non-payroll spending is otherwise eligible.
Historically, unforgiven portions remained PPP loans at 1% interest with the contractual maturity applicable to that note. Borrowers should rely on their actual loan documents and SBA forgiveness status rather than a generic summary.