bookkeeping accounting concept. calculator on financial statement and balance sheet annual. concept: PPP Loan Calculation
Betsy Wise
By: betsy_wise
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PPP Loan Calculator Excel: How To Use The Payroll Worksheet

Using a PPP loan calculator excel can help you understand your business expenses, even though the Paycheck Protection Program has already ended.

If you were hoping to get some capital to invest in your business, you’re in luck. At Camino Financial, we want to see you thrive; that’s why we offer small business loans with minimum requirements.

Apply For A Business Loan!

With the Paycheck Protection Program (PPP), the Small Business Administration allowed small business owners to apply for funding to cover 8 weeks of payroll that is forgivable (you don’t repay it as long as you follow guidelines) specific non-payroll expenses.

To apply for the PPP and know how much money you have could use, you had to make some paycheck calculations, though.

This post details how to use the forgiveness calculator payroll worksheet by the FMA when making a PPP loan calculation to figure out the loan amount you qualify for.

You can download the PPP Loan Worksheet here:


Because the calculator worksheet includes formulas, we suggest that you make a working copy to use in place of the original document (formulas have a way of disappearing). 

Table of Contents
1. How did the PPP forgiveness program process work
2. How to use the PPP loan forgiveness calculators?
3. Calculate average monthly payroll costs with the worksheet
4. Tips and suggestions when calculating PPP loan amount
 5. Camino Financial cares
6. FAQs

What is PPP Loan Forgiveness Calculators

The PPP Loan Forgiveness Calculator is a tool that can help you calculate how much the SBA will forgive your PPP loan.

The calculator considers factors such as your loan amount, interest rate, and repayment term. It also includes an estimate of the fees you will need to pay for your application.

How Did the PPP Forgiveness Program Process Work?

Here are the key things you need to know about the PPP loan process:

  • As specified in the Cares Act, you had to use the loan proceeds for eligible expenses. Eligible expenses included payroll, mortgage interest, rent, and utility payments.
  • You had to use at least 60% of the loan proceeds for payroll costs. If you didn’t meet this requirement, you would not be eligible for total loan forgiveness.
  • You had to submit your request for loan forgiveness to your lender within ten months of the end of your covered period.
  • You had to provide documentation to support your request for loan forgiveness, including payroll reports, tax forms, and bank statements.

If followed these simple guidelines, it’s likely you have beneficiated in the forgiveness program and got your business back on track.

 How is PPP loan calculated?

SBA has based the PPP loans on your monthly payroll costs from 2019. To calculate your loan amount, you’ll need to use the PPP loan payment calculator provided by the Small Business Administration (SBA).

How to Use the PPP Loan Forgiveness Calculators?

To use the PPP Loan Forgiveness Calculator, simply enter your loan information into the fields provided.

Once you have done that, hit the “Calculate” button to see your results.

The calculator will then give you an estimate of how much they will forgive your loan.

Remember that this is just an estimate, and your actual results may vary.

The PPP loan forgiveness process is pretty simple: you just need to submit a request to your lender, and they will calculate how much of the loan is eligible for forgiveness.

Calculate Average Monthly Payroll Costs With the PPP Loan Calculator Excel Template

Calculating the PPP loan amount is quite easy!

The PPP loan forgiveness worksheet Excel will help you to calculate how much is your monthly payroll. You can use it even though the program has ended.

Get familiar with the spreadsheet

You may want to rush through filling out the worksheet since SBA lenders are accepting applications on a first-come, first-serve basis.

However, it’s essential to take your time to provide accurate information before filling out your PPP application.

  • Open the worksheet. It opens to the Detailed Estimator tab. Notice the tabs on the bottom line—Detailed Estimator, Instructions, and Simple Estimator. 

ppp loan calculator template


  • Explore the Instructions tab. Read all the notations and table headings.  Notice that it specifically points out to only input data in the yellow cella+s. Do not input data in the blue cells as you could delete formulas. Take note of tips and background information.

ppp loan calculator excel

  • Go back to the Detailed Estimator tab. The spreadsheet is fairly wide, so make sure to scroll to the right as far as possible to see all the required information.

template for calculating ppp loan amount

  • There you can change the Period for Payroll Costs by clicking on the drop-down menu and selecting from one of the five selections listed. 

period for calculperiod for calculating payroll costsating payroll costs

  • Notice the “important box” located at the top right of the document. Once you make entries in Section 2 in the yellow cells, the document automatically makes the necessary calculations.

ppp montly payroll report template

  • Should you already have an EIDL loan, there are yellow cells at the extreme top right to enter the amount of an outstanding EIDL and the advance you received.

ppp schedule a worksheet excel

  • Use the Simple Calculator when you’ve already calculated your total costs to include wages, benefits, and paid state and local taxes you paid as an employer.

Gather payroll information

If you use payroll accounting software, you can run a composite report for the period you chose to figure payroll costs.

Otherwise, you will need to gather the information manually from your payroll sheets.

As of right now, it’s not 100% clear what retirement benefits to include or what health benefits beyond premiums are eligible. This program is a work in progress and the government is issuing clarifications everyday. We recommend you check in with your borrower of choice as they might have their own requirements.

Include the total amount you paid to each employee for wages, tips, commissions, paid vacation, and sick leave, as well as amounts paid for health and retirement benefits. 

Lastly, figure out how much you paid in state and local taxes paid on amounts compensated to employees (do not include employer-paid FICA tax).

Don’t worry about making adjustments to salary for individuals paid more than $100,000 per year.

The worksheet will make that adjustment automatically. 

Keep copies of your payroll reports as the lender will more than likely require this documentation to approve the loan.

Furthermore, since you can use a portion of the PPP loan for a mortgage, lease, and utility obligations, gather documents to verify that you make those types of payments.

Input payroll data into the spreadsheet

When making a PPP loan payroll calculation, the worksheet is straightforward.

Simply enter the amounts in the yellow cells for each column.

PPP Loan Calculation worksheet

After entering the information, scroll to the bottom of the rows to verify the total allowable payroll amount.

The worksheet will divide that figure by 12 to arrive at your average monthly payroll.

excel sheet

The worksheet will multiply your total allowable payroll amount by 2.5 to determine the amount you need to input into your loan application. The worksheet will add an adjustment amount should you already have an EIDL loan.

Don’t forget to fill the section regarding EIDL loans. If you don’t have an EIDL loan, leave those yello cells blank. 

ppp schedule a worksheet excel

Remember: your total loan request is your average monthly payroll or the sum of that amount plus an EIDL adjustment.

Complete the SBA PPP application

While you or someone else is gathering information to calculate the amount of your loan request, you can become familiar with portions of the SBA PPP application.

The form requires the following information:

  • Type of business structure
  • Business legal name and address, TIN, business phone number, contact person, and email address
  • PPP loan amount calculator section also includes a question about the purpose of the loan
  • Applicant ownership questions
  • Certifications and authorizations section
  • Signature section

Your lender may not use this same PPP payroll report template but will require one similar to it. The more information you have available and the more familiar you are with the process, the quicker you can apply for financial aid.

Where to Apply for the Paycheck Protection Program (PPP Loan)

Tips and Suggestions When Calculating PPP Loan Amount

  • In addition to payroll records, a lender may need copies of bank records and profit and loss statements. 
  • Once you receive a PPP or EIDL loan, or both, keep good records to prove how you spent the money.
  • If you can’t provide documentation, you will need to repay the amount of the loan that isn’t forgiven.
  • Depending on the lender, they may require a specific period. Then too, lenders may choose to only work with their existing customers.
  • So, it’s a good idea to research lenders before you fill out a PPP application (you should NOT submit 2 or more applications at the same time).
  • Some banks have yet to launch their PPP applications, so business owners are waiting until they do. 
  • Using the same period based on how you set up your business structure makes the most sense.
  • For instance, if you run your business on a calendar year from January to December, you should complete your PPP loan calculation based on that period. 
  • When applying for a PPP loan, you can simultaneously apply for an EIDL loan (Economic Injury Disaster Loan), which includes a $10,000 advance that’s forgivable. 
  • However, if you apply for both types of loans, you can’t use the loan proceeds for the same thing.
  • For example, you could use this loan to cover payroll and a percentage of other qualifying expenses. You could use an EIDL for operating expenses.
  • If you only get one loan such, as an EIDL loan, you could use the proceeds for both payroll and working capital costs.

Keep in mind that while lenders get up and running with the program, the government provides more precise instructions. Please know that the situation changes every day because this program is a work and progress. You can expect future changes.

By using the worksheet to make a PPP loan calculation, you’re in an excellent position to apply for a loan with your lender and get the financial relief you need as long as funds are available. Plus, you’ll know how much money you qualify for. 

Camino Financial Cares

No one in the business industry could have anticipated the unprecedented halt to the economy that COVID was. Thankfully, our government officials created the PPP loan to ease the strain on the economy, businesses, and families.

But now that the program has ended, businesses still need access to capital to keep their business growing and surviving.

At Camino Financial we can help small businesses!

Get Approved For A Loan Today

FAQs On Payroll PPP Calculator

How to Calculate the Average Monthly Payroll for PPP

The average monthly payroll for the paycheck protection program can calculate by dividing the total amount of money in the program by the number of months it will cover.

For example, if there are $10 million in payroll funds and the program covers 8 months, then the average monthly payroll would be $1.25 million.

How Much Do You Get From a PPP Loan?

The Paycheck Protection Program (PPP) loan is a forgivable loan of up to $10,000 per employee (maximum amount). You can use the loan to cover payroll and other expenses associated with maintaining your business during the COVID-19 pandemic, including employer contributions.

The PPP loan is interest-free and does not need to be repaid as long as the business retains all employees for at least two years after receiving the loan. If you do not retain all employees, you must repay a prorated portion of the loan based on the number of employees retained.

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