Economic Injury Disaster Loan (Eidl) Calculator

Estimate SBA Economic Injury Disaster Loan payments, calculate economic injury from revenue and COGS, and compare repayment terms up to 30 years.

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Formula & Methodology

How the Economic Injury Disaster Loan (EIDL) Calculator Works

The Economic Injury Disaster Loan (EIDL) calculator estimates monthly loan payments for small businesses and nonprofits applying for SBA disaster assistance. This tool uses the standard amortization formula along with SBA-specific parameters—including interest rates, loan caps, and economic injury estimates—to produce accurate repayment projections.

Understanding Economic Injury

Economic injury, as defined by the U.S. Small Business Administration (SBA), represents the financial losses a business sustains due to a declared disaster. The SBA calculates economic injury based on a business's working capital needs, derived from gross profit rather than gross revenue. The formula for estimating economic injury is:

Economic Injury = (Gross Annual Revenue − Cost of Goods Sold) ÷ 12 × Months of Working Capital Needed

For example, a small retail business with $480,000 in annual revenue and $180,000 in COGS has a gross profit of $300,000, or $25,000 per month. If the SBA determines that 6 months of working capital coverage is appropriate, the estimated economic injury equals $150,000.

Loan Amount Determination

The EIDL program caps loan amounts at $2,000,000 per borrower. The principal amount (P) used in the repayment calculation equals the lesser of the estimated economic injury or the $2,000,000 statutory maximum:

P = min(Economic Injury, $2,000,000)

Applicants who already know the specific loan amount offered by the SBA can override this estimate by entering the exact figure directly into the calculator.

Interest Rates by Entity Type

The SBA assigns fixed interest rates based on entity classification. For-profit businesses receive loans at 3.75% per annum, while private nonprofit organizations qualify for a reduced rate of 2.75% per annum. These rates are set by statute and do not fluctuate with market conditions, making EIDL loans substantially more affordable than conventional commercial lending products, which typically range from 7% to 15% depending on creditworthiness.

The Amortization Formula

Monthly payments are calculated using the standard fixed-rate amortization formula:

M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

Where:

M = Monthly payment amount
P = Principal loan amount (capped at $2,000,000)
r = Monthly interest rate (annual rate ÷ 12). For businesses: 0.0375 ÷ 12 = 0.003125. For nonprofits: 0.0275 ÷ 12 ≈ 0.002292.
n = Total number of monthly payments (loan term in years × 12). A 30-year loan equals 360 payments.

Worked Example: Small Business EIDL Calculation

Consider a for-profit restaurant with the following financials:

Gross Annual Revenue: $600,000
Cost of Goods Sold: $210,000
Working Capital Months: 6
Loan Term: 30 years

Step 1: Calculate gross profit: $600,000 − $210,000 = $390,000.

Step 2: Determine monthly working capital need: $390,000 ÷ 12 = $32,500.

Step 3: Estimate economic injury: $32,500 × 6 = $195,000. Since $195,000 is below $2,000,000, P = $195,000.

Step 4: Calculate the monthly interest rate: 0.0375 ÷ 12 = 0.003125.

Step 5: Calculate total payments: 30 × 12 = 360.

Step 6: Apply the formula: M = $195,000 × [0.003125 × (1.003125)³⁶⁰] ÷ [(1.003125)³⁶⁰ − 1] ≈ $903.05 per month.

Over the full 30-year term, total repayment equals approximately $325,098, meaning $130,098 in total interest paid.

Nonprofit Example

A nonprofit with $195,000 in economic injury at 2.75% over 30 years pays approximately $796.26 per month—saving over $106 monthly compared to a for-profit entity with identical loan terms.

Methodology Sources

This calculator follows the loan amount estimation methodology described in the U.S. Department of the Treasury's loan calculation guidelines and adheres to the program parameters established under 13 CFR Part 123, which governs the SBA Disaster Loan Program. Interest rates and maximum loan amounts reflect the current program terms published by the SBA's Economic Injury Disaster Loans program page.

Key Considerations

EIDL loans carry no prepayment penalties, allowing borrowers to reduce total interest by making additional payments. Loans under $25,000 require no collateral, while loans exceeding that threshold require the SBA to take a security interest in business assets. The SBA may also require personal guarantees for loans above $200,000, as outlined in recent Federal Register rule changes to the Disaster Assistance Loan Program.

Frequently Asked Questions

How is the EIDL loan amount calculated?

The EIDL loan amount is calculated by determining economic injury, which equals gross profit (gross revenue minus cost of goods sold) divided by 12, then multiplied by the number of months of working capital needed. The SBA typically uses 6 months of working capital. For example, a business with $500,000 in revenue and $200,000 in COGS has a monthly gross profit of $25,000, resulting in an estimated loan amount of $150,000 for 6 months of coverage. The maximum loan amount is capped at $2,000,000.

What interest rate applies to EIDL loans for businesses vs. nonprofits?

For-profit businesses receive EIDL loans at a fixed interest rate of 3.75% per annum, while private nonprofit organizations qualify for a reduced rate of 2.75% per annum. These rates are set by the SBA and remain fixed for the entire loan term, regardless of changes in the federal funds rate or other market benchmarks. On a $200,000 loan over 30 years, a nonprofit saves approximately $127 per month compared to a for-profit borrower.

What is the maximum EIDL loan amount available?

The maximum EIDL loan amount is $2,000,000 per borrower. This cap applies regardless of the calculated economic injury. If a large business calculates an economic injury of $3,500,000, the loan amount is still limited to $2,000,000. The actual approved amount depends on the SBA's verification of economic injury, the applicant's creditworthiness, and the ability to repay. Collateral is required for loans exceeding $25,000, and personal guarantees may be required for loans above $200,000.

How long is the repayment term for an EIDL loan?

EIDL loan repayment terms can extend up to 30 years (360 monthly payments), based on the borrower's ability to repay. The SBA determines the specific term during the approval process. A longer term reduces the monthly payment but increases total interest paid. For instance, a $150,000 loan at 3.75% costs $694.79 per month over 30 years with $100,124 in total interest, while a 15-year term costs $1,090.80 per month but only $46,344 in total interest—a savings of $53,780.

What is the difference between gross revenue and economic injury for EIDL purposes?

Gross revenue represents total income before any expenses, while economic injury measures actual financial loss caused by a disaster. The SBA calculates economic injury using gross profit (gross revenue minus cost of goods sold), not gross revenue alone. This distinction matters significantly: a business with $1,000,000 in revenue but $700,000 in COGS has only $300,000 in gross profit. Six months of working capital needs would yield a $150,000 loan estimate, not $500,000. The COGS deduction ensures loan amounts reflect actual operating losses.

Can EIDL loans be repaid early without penalties?

EIDL loans carry no prepayment penalties, meaning borrowers can make extra payments or pay off the entire balance early without incurring additional fees. This can produce substantial savings on interest. For example, adding just $200 per month to a $195,000 loan at 3.75% over 30 years reduces the total repayment period by approximately 10 years and saves over $45,000 in interest charges. Borrowers should confirm their payment is applied to principal reduction rather than future payment advancement by contacting their SBA loan servicer.