Loan payment calculator

What will your church loan actually cost each month?

Estimate your monthly payment, see every year of the schedule, and learn what each number means before you sign.

Your loan

Loan amount

Most church loans range from $250K to $25M

Interest rate (%)

Current church rates: 5.5% to 9.75%

Loan term

Start from a preset

Estimated monthly payment

$11,629/mo

Principal & interest only. Add taxes, insurance, and reserves for total housing cost.

Total cost over 20 years$2,791,076

Principal

$1,500,000

Interest

$1,291,076

Estimate only. Not a loan offer or commitment. Actual terms depend on lender underwriting, your church's financial profile, and current market rates.

See what you'd actually qualify for

Amortization schedule

How your balance and interest move year by year.

Remaining balance

Switch to

Lifetime payment split

Principal54%

Interest46%

0.86× principal in interest.

Affordability check

Lenders cap building expense at ~35% of giving.

Giving = $1M14.0% ✓

Giving = $1.5M9.3% ✓

Giving = $2M7.0% ✓

How church loan payments work

Church loan payments are calculated the same way as any commercial amortizing loan. The loan amount (principal), annual interest rate, and loan term determine a fixed monthly payment that covers both principal and interest over the life of the loan.

Most church loans are amortized over 15 to 25 years, with rates ranging from 5.5% (denomination extension funds) to 9.75% (traditional banks). Many include a balloon maturity at 5 to 10 years, meaning the remaining balance comes due and must be refinanced.

The balloon trap

Most church loans amortize over 20 years but mature at 5 or 10. The monthly payment is calculated against the full amortization, but the unpaid balance is due at maturity. Plan to refinance, build it into reserves, and never let the balloon date sneak up on the Board.

Typical church loan rates by lender type (2025)

Rates vary widely by lender category. Extension funds and faith-based CDFIs typically beat commercial banks by 1 to 2 points, but require denomination affiliation or membership.

Lender type	Typical rate	Term	Notes
Denomination extension funds	5.50% to 7.00%	15-25 yr	Mission-aligned, lowest rates
CDFI / faith-based credit unions	6.25% to 7.75%	15-25 yr	Flexible for smaller churches
Regional & community banks	6.75% to 8.50%	15-20 yr	Most common; relationship-driven
National commercial banks	7.25% to 9.00%	10-20 yr	Larger loans, stricter terms
Bond programs	6.50% to 8.25%	15-30 yr	For $5M+ projects

Source: Aggregated 2024-25 church loan placements across denomination extension funds, CDFIs, and commercial banks.

Frequently asked questions

What is a balloon payment?

Many church loans amortize over 20 to 25 years but mature after 5 to 10. At maturity, the remaining balance must be paid in full or refinanced. Plan for it.

Are church loan payments tax-deductible?

Churches are tax-exempt under 501(c)(3) and don't pay income tax, so deductibility doesn't apply the way it does for individuals or businesses.

Should we choose a fixed or variable rate?

Fixed rates provide payment certainty for budgeting. Variable rates may start lower but carry risk. Most church finance advisors recommend fixed.

How is the monthly payment calculated?

Standard amortization formula: principal × (r(1+r)^n) / ((1+r)^n − 1), where r is the monthly rate and n is the number of months.

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