Calculator Inputs
Example Data Table
| Scenario | Loan Amount | Payroll Costs | Nonpayroll Costs | FTE Quotient | Wage Reduction | Estimated Forgiveness |
|---|---|---|---|---|---|---|
| Strong payroll usage | $150,000 | $115,000 | $25,000 | 1.0000 | $0 | $140,000 |
| FTE reduction | $150,000 | $105,000 | $30,000 | 0.8500 | $2,500 | $112,625 |
| Payroll rule limit | $150,000 | $75,000 | $60,000 | 1.0000 | $0 | $125,000 |
Formula Used
Eligible payroll costs = employee cash payroll + health benefits + retirement benefits + state payroll taxes + capped owner compensation.
Eligible nonpayroll costs = mortgage interest + rent + utilities + operations expenses + property damage costs + supplier costs + worker protection expenses.
Owner compensation cap = owner count × $20,833 for a 24-week covered period.
FTE quotient = covered period average FTE ÷ reference period average FTE. The value is capped at 1.0000. If safe harbor applies, the quotient is 1.0000.
Adjusted eligible costs = (eligible payroll + eligible nonpayroll − wage reduction) × FTE quotient.
Payroll rule ceiling = eligible payroll costs ÷ 0.60.
Estimated forgiveness = lower of loan amount, adjusted eligible costs, or payroll rule ceiling, minus other adjustments.
Unforgiven balance = loan amount − estimated forgiveness.
How to Use This Calculator
- Enter the original PPP loan amount.
- Add payroll costs paid or incurred during the 24-week covered period.
- Enter employer benefit costs and allowed state payroll taxes.
- Add owner compensation and the number of owners.
- Enter allowed nonpayroll costs, such as rent, utilities, and covered supplier costs.
- Add reference and covered period FTE figures.
- Enter any salary or wage reduction amount.
- Select the safe harbor box only when it applies.
- Submit the form to view the result above the input section.
- Use the CSV or PDF button to save the summary.
24-Week PPP Forgiveness Planning Guide
Why the Covered Period Matters
The 24-week covered period gives borrowers more time to spend funds on eligible costs. It can help businesses reach stronger payroll totals. It can also reduce pressure from temporary shutdowns. A longer period may improve forgiveness when payroll was slow at the start. Good records still matter. Lenders need clear proof for every cost.
Payroll Is the Main Driver
Payroll costs usually carry the largest weight in forgiveness planning. The calculator tests the important 60 percent payroll rule. If payroll is too low, forgiveness may be limited. Payroll can include wages, salaries, tips, certain benefits, retirement contributions, and allowed state payroll taxes. Owner compensation is capped separately. This page includes that cap.
Nonpayroll Costs Can Help
Nonpayroll costs may include rent, business mortgage interest, utilities, covered operations expenses, supplier costs, property damage costs, and worker protection costs. These costs can support forgiveness. They cannot dominate the request. The calculator compares nonpayroll spending against the payroll limit. This helps show whether extra nonpayroll costs increase forgiveness or simply exceed the allowed balance.
FTE and Wage Reductions
Forgiveness can fall when average full-time equivalent staffing drops. It can also fall when certain wages are reduced. The tool applies a salary reduction first. Then it applies the FTE quotient. A safe harbor option is included. Use it only when your facts support it. Keep payroll reports and staffing records.
Using the Result
The result is an estimate. It is not an approval. Use it to review planning gaps before submitting documents. Compare payroll costs, nonpayroll costs, and reductions. Download the CSV or PDF summary for your working file. Share the final figures with your accountant, bookkeeper, or lender. Careful documentation makes the review process easier.
FAQs
1. What is a 24-week PPP forgiveness calculator?
It estimates loan forgiveness using costs paid or incurred during a 24-week covered period. It reviews payroll costs, nonpayroll costs, FTE changes, wage reductions, and the payroll percentage rule.
2. Does this calculator guarantee forgiveness?
No. It provides an estimate only. Final forgiveness depends on lender review, SBA requirements, eligible documentation, borrower certifications, and any later rule interpretation that applies to the loan.
3. Why is payroll so important?
PPP forgiveness generally depends heavily on payroll spending. The calculator applies a 60 percent payroll rule by limiting forgiveness when eligible payroll is too low compared with the requested forgiveness amount.
4. What nonpayroll costs are included?
The form includes mortgage interest, rent, utilities, operations expenses, property damage costs, supplier costs, and worker protection expenses. Users should enter only costs that meet program and documentation requirements.
5. What is the FTE reduction quotient?
It compares average full-time equivalent employees during the covered period with a reference period. If staffing dropped and no safe harbor applies, forgiveness may be reduced by that quotient.
6. What does the safe harbor checkbox do?
When selected, the calculator uses an FTE quotient of 1.0000. Select it only when the borrower qualifies under applicable safe harbor rules and has supporting records.
7. Why is owner compensation capped?
Owner compensation has separate forgiveness limits. This calculator uses a 24-week cap of $20,833 per owner. Any entered amount above that cap is excluded from eligible payroll.
8. Can I export the result?
Yes. After submitting the form, use the CSV button for spreadsheet records or the PDF button for a simple printable summary of the estimated forgiveness result.