To use this calculator, input your payroll and non-payroll costs, select the covered period, and enter any reductions in employee compensation or full-time equivalent employees. The calculator will provide an estimate of your PPP loan forgiveness amount.
The formula considers eligible payroll and non-payroll costs, reductions in employee compensation and FTEs, and ensures non-payroll costs do not exceed 25% of the total forgiveness amount. The maximum loan amount is calculated by multiplying the average monthly payroll by a multiplier, typically 2.5.
Suppose your payroll costs are $100,000, non-payroll costs are $30,000, with no reductions in employee compensation or FTEs. The calculator will determine the forgivable amount based on these inputs.
Consider potential changes in SBA guidelines and ensure that all inputs are accurate to maximize your loan forgiveness. For more detailed calculations, consider using our Loan Calculator or Paycheck Calculator.