Economic Injury Disaster Loan Emergency Advance (EIDL)

What does this EIDL calculator estimate?

This tool models a fixed-rate installment loan with an initial payment deferment. It estimates the historical emergency advance separately, calculates interest accumulated while scheduled payments are deferred, adds that interest to the repayment balance, and then amortizes the balance over the remaining note term. The result set includes the scheduled monthly payment, planned payment with any extra amount, total interest, total cash repaid, number of payments, estimated payoff date, a principal-versus-interest breakdown, a balance chart, and an annual schedule.

The model follows the loan structure described in the historical EIDL material: a low fixed rate, a long maximum term, and interest accruing during deferment. It is an analytical estimate rather than a servicing statement. Existing borrowers should use the figures on their note and compare the result with the SBA guidance for managing a COVID-19 EIDL and their portal balance.

How should each input be completed?

Borrower type and annual interest rate

Borrower type supplies a historical starting rate: 3.75% for a for-profit business or 2.75% for a qualifying private nonprofit. Selecting Custom rate lets you model the exact annual rate printed on another note. The interest rate is required. A higher rate increases deferred interest, the monthly payment, and total interest; a lower rate reduces them. Enter the nominal annual percentage, not the monthly rate and not a decimal fraction. For example, enter 3.75%, not 0.0375%. The SBA COVID-19 EIDL program summary distinguishes repayable loan funds from advance funds that did not require repayment.

Repayable loan principal

Use the principal amount on the promissory note that must be repaid. Do not subtract a separate EIDL advance merely because the advance was associated with the application; the calculator reports that advance independently. Principal is required and cannot be negative. Increasing principal scales the payment and interest almost proportionally when the rate and term remain unchanged. A common mistake is entering the current portal balance instead of original principal while also entering the original deferment; that double-counts accrued interest.

Employees used for the advance

The historical emergency advance is modeled as $1,000 per employee, limited to $10,000. This field affects only the displayed advance and does not reduce the repayable loan principal. Enter zero when no advance was received or when the advance is irrelevant to the analysis. Values above ten still produce a $10,000 estimate because of the cap. Actual advance awards depended on the program rules and application record, so the estimate should not replace award documentation.

Total note term and payment deferment

Total note term is the number of years from disbursement to maturity, not the number of years remaining today. The model allows up to 30 years. A longer term usually lowers the scheduled monthly payment but raises total interest because the balance remains outstanding longer. Deferment is the number of months before scheduled repayment. More deferment increases accrued interest and leaves fewer months before maturity, usually increasing both the repayment balance and the required payment. The deferment must be shorter than the total term.

Extra monthly payment and disbursement date

Extra monthly payment is optional and begins with the first modeled scheduled installment. It does not change the contractual payment shown as the primary result; instead, it increases planned monthly outflow and can shorten the payoff period. Extra payments are applied after monthly interest, directly reducing principal. The disbursement date labels schedule periods and determines the modeled first-payment and payoff months. Confirm whether the servicer applies voluntary payments in the same way before relying on a payoff estimate.

How are the main results calculated?

During deferment, the calculator accrues simple interest on the original principal for the number of deferred months. That amount is then added to principal for the repayment phase. The scheduled payment uses the standard fixed-payment amortization formula over the months remaining until maturity:

When the annual rate is zero, the balance is divided evenly across the remaining months. Each repayment month then calculates interest on the opening balance, applies the scheduled payment plus any extra payment, and limits the final payment so the balance never becomes negative. Deferred interest and repayment-phase interest are added to produce total interest. Total repaid equals original principal plus total interest; the separate advance is excluded because the historical advance did not require repayment under the program rules.

How should the charts and schedule be interpreted?

The repayment breakdown compares original principal with all modeled interest. A larger interest share can result from a higher rate, a longer term, or a longer deferment. The balance chart uses annual checkpoints: the outstanding balance should trend downward after repayment begins, while cumulative interest trends upward. A flat or rising balance during deferment is expected because no scheduled principal is being paid.

The annual schedule aggregates every monthly row into a calendar-like loan year. Opening balance is the first balance in the period. Payments are the actual cash payments made during that period, principal is the amount reducing the balance, interest includes accrued financing cost, and ending balance is the balance after the last month in the row. The final period may contain fewer than twelve months, and its final payment can be smaller than the regular planned amount.

What assumptions can materially change the estimate?

Servicing calculations may differ because EIDL interest can accrue daily, payment posting dates vary, voluntary payments may be applied differently, and a note can retain a balloon amount at maturity. This calculator uses monthly periods and capitalizes modeled deferred interest at the start of amortization. It also assumes a fixed rate and no late charges, servicing fees, payment-assistance modifications, missed payments, or changes in payment timing. The SBA payment and loan-portal guidance and the signed note are the better sources for contractual details.

Use scenario testing rather than a single point estimate. Compare the note rate with a slightly higher rate, shorten and lengthen the term, and test a realistic extra payment. The most useful affordability check is not merely whether the scheduled payment is low, but whether operating cash flow can support the payment through seasonal or volatile months. This page provides educational estimates and does not provide financial, legal, tax, or servicing advice.