How to use the credit utilization calculator
- Enter each card or line of credit with its current balance and credit limit. Use the Add a card button for more.
- Set a target utilization. The default of 30% is only an example you can replace. No single cutoff is official and scoring models are not public.
- Read your overall utilization, the highest single card and the amount you would need to pay down to reach the target.
- Check the table for each card. A high balance on one card can matter even when the overall figure looks fine.
Formula
Overall utilization = total balances / total credit limits x 100
Card utilization = card balance / card limit x 100
Pay down to reach a target = total balances - total limits x target
The per card pay down column treats each card on its own against the same target. It is not the same figure as the overall pay down.
Worked example
Card 1 has a $1,200 balance on a $5,000 limit (24%) and Card 2 has $450 on $3,000 (15%). Together that is $1,650 on $8,000, or 20.625% overall.
At a 30% target you could carry $2,400, so nothing needs paying. Aiming for 10% would allow $800, so you would pay down $1,650 - $800 = $850.
What credit utilization is
Credit utilization is the share of your available revolving credit that you are using. Lenders and scoring models look at it as a sign of how much you rely on borrowing. The exact way it enters any score is private and differs by model, so a calculator can show the ratio but cannot promise what it does to a score.
Overall versus per card
Some models look at both the total and the individual cards. A single card near its limit can look riskier than the overall figure suggests. If you have one maxed card and several empty ones, paying down the maxed card first usually helps both measures. To plan the payoff itself, use the credit card payoff calculator and see what interest costs with the credit card interest calculator.
When the balance is counted
Issuers usually report your balance once a month, often on the statement date, not on the due date. Paying before the statement closes can lower the reported balance. Check your issuer's timing, and keep paying on time, since late payments cost far more than a high ratio.
Assumptions and limits
- Balances and limits are the figures you enter. The tool does not look up accounts or credit reports.
- The target is yours to choose. No single cutoff is official, and score models are not public.
- Lines of credit with no preset limit and closed accounts are not modeled.
- A balance above a limit is allowed in the math and flagged, since over limit accounts are possible.
Frequently asked questions
How do you calculate credit utilization?
Add all your card balances, add all your credit limits and divide the first by the second. Balances of $1,650 against limits of $8,000 give 20.6%.
Is 30% a required limit?
No. It is only the example default, and no published rule sets a required cutoff. Lower ratios are generally viewed more favorably, but the real effect depends on the scoring model.
Does closing a card change my utilization?
Yes. Closing a card removes its limit from the total, so the same balances make a larger share of what is left. Keeping an unused, fee free card open can help.
Should I ask for a higher limit?
A higher limit lowers the ratio if your balances stay the same, but it can involve a hard credit check and may tempt more spending. Compare the benefit with those costs.