Credit Utilization Ratio Calculator
Understand how much of your revolving credit line is currently in use. Enter the latest balance and the card's credit limit to see the utilization percentage lenders monitor.
Informational tool only—review your full credit report and speak with a financial professional for personalised advice.
Examples
- $500 balance on a $2,000 limit ⇒ 25.00% utilization
- $1,200 balance on a $1,500 limit ⇒ 80.00% utilization
- $300 balance on a $3,000 limit ⇒ 10.00% utilization
FAQ
What counts as a balance?
Use the amount shown on your statement or current online balance, including any pending charges you expect to post.
Why does utilization impact my credit score?
Scoring models treat high utilization as a sign of elevated risk, so lower ratios typically contribute to stronger scores.
Should I aim for zero utilization?
Single-digit utilization often maximises scores, but allowing a small balance to report demonstrates active use of the account.
How do I calculate utilization across multiple cards?
Add together the balances of all cards, divide by the sum of their limits, and multiply by 100 to get an overall ratio.
What strategies lower my utilization quickly?
Make mid-cycle payments, pay down revolving balances, or request a limit increase while avoiding new debt.
Additional Information
- Most credit scoring models reward keeping utilization under 30%, with 10% or less considered excellent.
- Utilization is calculated by dividing balances by limits; paying before the statement closes can lower reported balances.
- You can compute utilization per card or in aggregate by summing balances and limits across all revolving accounts.
- High utilization can signal financial stress to lenders even if you pay on time.