If you are applying using IRS Form 1040 and attachment Schedule C, then you calculate your loan amount by following these steps:
Step 1: Find your 2019 IRS Form 1040 Schedule C line 7 gross profit amount. If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.
Step 2: Calculate the average monthly gross profit amount (divide the amount from Step 1 by 12).
Step 3: Multiply the average monthly gross profit amount from Step 2 by 2.5. This amount cannot exceed $20,833.
Your 2019 IRS Form 1040 and attached Schedule C must be provided to substantiate the applied-for PPP loan amount.
Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent by the borrower during the covered period following disbursement of the PPP loan.
How to calculate loan amount if using Schedule F (Farmers and Ranchers)