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Betsy Wise
By: betsy_wise
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PPP Loan Calculation: How to Use the Payroll Worksheet

Unfortunately, the PPP loan 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 during the new normal, that’s why we offer small business loans with minimum requirements.

Apply today and start growing your business!

Apply For A Business Loan!


Financial relief could keep your business from closing its doors. With the SBA Paycheck Protection Program (PPP) in place, small business owners can apply for funding to cover 8 weeks of payroll that is forgivable (you don’t repay it as long as you follow guidelines) and specific non-payroll expenses.

To apply for the PPP, and to know how much money you can apply for, you need to make some paycheck calculations, though.

This post details how to use the  PPP calculator payroll worksheet by the FMA when making a PPP loan calculation to figure 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). 


PPP loan: calculate using gross income

Now, independent contractors, self-employed individuals, and sole proprietors calculate their PPP differently. Now they calculate it using gross income.

PPP loan: calculate average monthly payroll with the Worksheet

1. 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 Calculation worksheet


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

PPP Loan Calculation worksheet

  • 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.

PPP Loan Calculation worksheet

  • 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. 

PPP Loan Calculation worksheet

  • 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 Loan Calculation worksheet

  • 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 Loan Calculation worksheet

  • 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.

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

3. Input payroll data into the spreadsheet

When making a PPP loan 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.

PPP Loan Calculation worksheet

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 YELLOW CELLS blank. 

PPP Loan Calculation worksheet

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

4. 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 calculation section which 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 application 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.

Set of urban 3d buildings of different colors for creativity and design, includes skyscrapers, houses, shops, offices, natural sites, trees, transport, bank localization. Cocnept: Where to Apply for the PPP Loan

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


Tips and Suggestions

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, a PPP loan could be used 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 costs and working capital.

Keep in mind, while lenders get up and running with the program, the government is working on providing more precise instructions. Please know that the situation is changing every day because this program is a work and progress. Future changes are expected.

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 you!

Get Approved For A Loan Today



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