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We’ve created this Paycheck Protection Program loan forgiveness calculator to help you estimate how much of your PPP loan could be forgiven — if you meet certain criteria.
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PPP loan forgiveness calculator

If you've received Paycheck Protection Program (PPP) funding through the Small Business Administration (or are thinking about applying), you probably have questions about how the loan forgiveness part of the program works. While you’ll need to perform a payroll and expense audit to determine exactly how much of your loan is likely to be forgiven, our PPP loan forgiveness calculator can help give you a good estimation of what to expect.



PPP Loan Forgiveness Estimate

What was the amount of your PPP loan? 

Please enter the dollar amount of the PPP loan you received. If you did not receive a loan yet or want to learn more about the PPP loan program, check out our detailed PPP resources.

Before the loan

How many full-time equivalent (FTEs) employees did you have during the pre-loan comparison period? 

To ensure you maintain your employee count during the course of your PPP loan, the forgiveness application asks borrowers to provide your FTE count from a period before the loan (the “defined comparison period”). You may choose one of the following periods:


  • February 15 to June 30, 2019.

  • January 1 to February 29, 2020.

  • Or, if your business is a seasonal springtime business, you should use the range from February 15 to June 30, 2019.


Any full-time, salaried employee counts as one FTE, as does any hourly employee who works 40 or more hours per week. For part-time employees, divide their average weekly hours by 40 and round to the nearest tenth. For example, an employee who works 15 hours per week would count as 0.25 of an FTE (after you divide 15 by 40 and round up the result).

After the loan

What were your total payroll costs for the 8 weeks following the loan? 

For the purposes of determining total payroll expenses, please enter all the payroll-related expenses you incurred during the 8 weeks following the loan. Payroll expenses may include:


  • Salaries, wages, commissions or similar

  • Cash tips or the equivalent

  • Payment for leave

  • Payments for group health care benefits, including group health care coverage

  • Payment of retirement benefits

  • Payment of state and local taxes assessed on the compensation of employees


You may choose one of the following two periods to define the 8-week period for payroll expenses:


  • The 56 days immediately following the issuance of the loan.

  • Or, if your pay periods are out of sync with the date you received your loan, you may use the 8-week period beginning with the first pay period to follow your PPP loan disbursement date.

How much did you spend on rent, utility, and/or mortgage interest during the 8 weeks following the loan? 

Please enter the combined amount of rents, mortgage interest, and/or utility costs your business incurred over the 56 days following the disbursement of your PPP loan. To be eligible for forgiveness, any rents, mortgage interest or utilities must also have been in place prior to 2/15/2020.

How many FTEs did you have during the 8 weeks following the loan? 

To ensure you maintain your employee count during the course of your PPP loan, the forgiveness application asks borrowers to provide your FTE count for the 8 weeks following loan disbursement.


Any full time, salaried employee counts as one FTE, as does any hourly employee who works 40 or more hours per week. For part-time employees, divide their average weekly hours by 40 and round to the nearest tenth. For example, an employee who works 15 hours per week would count as 0.25 of an FTE (after you divide 15 by 40 and round up the result).

Did any employees experience a wage decrease of more than 25% of their previous wages? If so, please enter the total amount of employee wage decreases that exceed 25%. 

To have your loan completely forgiven, wages for individual employees may not decrease by more than 25%. You can find detailed instructions for this calculation on page 7 of the Loan Forgiveness Application. Here’s how it works:


  • Exclude any employees who received wages over $100,000 at an annualized rate.

  • Using payroll expenses from the first quarter of 2020 (January 1 to March 31, 2020), calculate the annualized salary for each employee.

  • Using payroll expenses from either the 8 week period following your PPP loan (or you can use the 8 week period that begins with your first pay cycle after receiving the loan), calculate the annualized salary for each employee.

  • January 1 to March 31, 2020, calculate the annualized salary for each employee.

  • For each employee, divide the annualized salary from the first quarter by the annualized salary from the 8 week period.

  • When the result is 0.74 or less, it means an employee experienced a wage decrease of more than 25%. For each of those employees, calculate how much their wage decrease exceeds 25% by multiplying their first quarter wages by 0.75, then subtracting the amount of annualized wages they received during the 8 week period.

  • Add up those numbers to get the total amount of wage decrease that exceeds 25%.


For example, if an employee earned $20,000 in the first quarter, their annualized wage would be $80,000 (which is $20,000 times 4 quarters). If they received $8,000 over the 8 week period, their annualized salary would be $52,000 (which is $8,000 divided by 8 weeks times 52 weeks).


Dividing the salary from the 8 week period by the salary from the first quarter results in .65, which means they have lost more than 25% of their wages. If they received 75% of their wages, they would have received $60,000 (which is $80,000 times 0.75). So the amount of the decrease that exceeded 25% is $60,000 minus $52,000: $8,000.

Estimated Forgiveness

We estimate this amount will be forgiven:

$ 0.00

And it looks like you’ll still owe this much:

$ 0.00


These calculations are based on the information you provide and are for informational purposes only. The calculations are based on government guidance that is subject to change. As additional guidance from the SBA is released, this page will be updated.


To learn more about the PPP and how it works, check out our more detailed articles:



And if you want to apply for loan forgiveness, please fill out the SBA’s loan forgiveness application and file it with your lender.



This article is for informational purposes only and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors for formal consultation.

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