Paycheck Protection Program Loan Amount Calculator

Calculator Inputs

Loan Draw Type

Business Category

Months In Payroll Period

Gross Payroll Compensation

Compensation Above Annual Cap

Paid Leave And Similar Payroll

Group Health Costs

Retirement Contributions

State And Local Payroll Taxes

Owner Compensation Entered

Owner Compensation Limit

Excluded Contractor Payments

Eligible EIDL Refinance Add-On

Manual Multiplier Override

Custom Loan Cap

Formula Used

Eligible payroll equals gross payroll minus compensation above the annual cap, plus allowed leave, health costs, retirement costs, state payroll taxes, and allowed owner compensation.

Average monthly payroll = eligible payroll ÷ months in the selected period. Base loan amount = average monthly payroll × multiplier. Final estimate = lower of amount before cap or the selected loan cap.

Most calculations use a 2.5 multiplier. A second draw for accommodation or food service may use 3.5. First draw and second draw caps are handled automatically unless a custom cap is entered.

How To Use This Calculator

Select the loan draw type and business category.
Enter payroll figures for the period you want to analyze.
Enter compensation excluded by the annual employee cap.
Add health, retirement, state tax, and owner compensation amounts.
Use manual override fields only when your worksheet requires them.
Submit the form and review the result above the inputs.
Download the CSV or PDF report for your records.

Example Data Table

Scenario	Eligible Payroll	Months	Average Monthly Payroll	Multiplier	Estimated Loan
General First Draw	$1,000,000.00	12	$83,333.33	2.5	$208,333.33
Second Draw Restaurant	$840,000.00	12	$70,000.00	3.5	$245,000.00
Seasonal Business	$360,000.00	4	$90,000.00	2.5	$225,000.00

Understanding PPP Loan Estimates

A Paycheck Protection Program loan amount estimate starts with average monthly payroll. The program used payroll costs to size support for employers, contractors, and eligible self employed applicants. This calculator helps organize those figures before a worksheet is prepared. It does not replace lender guidance. It gives a structured estimate.

What Counts As Payroll

Payroll may include gross wages, salaries, tips, commissions, paid leave, group health costs, retirement contributions, and state or local payroll taxes. Compensation above the annual cap is excluded for each worker. Federal employment taxes, independent contractor payments, and most owner amounts above the allowed limit are treated separately. Clean inputs produce clearer results.

Draw Type Matters

A first draw estimate usually uses two and one half months of average payroll. A second draw estimate uses the same multiplier for most businesses. Some accommodation and food service businesses may use three and one half months for a second draw. Loan caps also differ by draw type. The calculator applies the selected cap and shows the limited amount.

Why Adjustments Are Useful

Many records need adjustments before an estimate is reliable. A business may need to remove excess compensation, separate owner pay, include benefits, or add eligible refinancing amounts. Seasonal firms may compare different payroll periods. New firms may annualize short operating histories. This tool provides fields for those situations.

Using The Result

The result should be reviewed with payroll reports, tax filings, bank records, and lender forms. Save the exported report with the inputs used. That makes later review easier. The estimate can support planning, but approval depends on eligibility, documentation, and program rules. When records are uncertain, use conservative numbers and keep notes.

Good Record Practice

Keep a copy of payroll summaries, benefit invoices, retirement contributions, tax reports, and ownership calculations. Label the period used for the average. Record why each adjustment was made. A clear file helps explain the loan amount if questions arise later.

Common Estimate Checks

Compare the final estimate with the maximum cap. Review the multiplier and business category. Make sure monthly payroll was divided by the correct number of months. Recheck owner limits and excluded compensation before sharing the report. Keep each worksheet version dated and traceable.

FAQs

What does this calculator estimate?

It estimates a possible Paycheck Protection Program loan amount using payroll costs, selected multiplier, owner limits, refinancing add-ons, and loan caps. It is for planning and record organization.

Does this tool decide eligibility?

No. Eligibility depends on program rules, lender review, business status, payroll records, certifications, and supporting documents. This tool only calculates an estimated loan amount.

Why is compensation above the cap excluded?

The program limited counted compensation for each worker. Amounts above the annual cap should be removed before average monthly payroll is calculated.

When is the 3.5 multiplier used?

Some accommodation and food service businesses used a 3.5 multiplier for second draw estimates. Other common cases used a 2.5 multiplier.

Can self employed users use this calculator?

Yes. Self employed users can enter owner compensation and set the owner compensation limit. They should compare the result with official worksheet instructions.

Why enter months in the payroll period?

The calculator divides eligible payroll by the number of months entered. This creates average monthly payroll for annual, seasonal, or shorter operating periods.

What is the custom cap field for?

Use it when your worksheet, lender, or special rule requires a different maximum loan cap than the automatic first draw or second draw cap.

Are contractor payments included?

Independent contractor payments were generally not included in an employer payroll cost calculation. This calculator shows excluded contractor payments for record clarity.