Credit Utilization Ratio Calculator

Credit Utilization Ratio Calculator calculator can be used to determine how much of your available credit you're using. This ratio is an important factor in your credit score.

Input Parameters

Calculation Results

Calculation Formula

Credit Utilization Ratio = (Current Credit Balance / Total Credit Limit) × 100%

Where:
Current Credit Balance: The amount of credit you currently owe
Total Credit Limit: The maximum amount of credit available to you

Your Results

Credit Utilization Ratio:

0%

Recommendation:

Keep your credit utilization below 30% to maintain a good credit score.

Credit Utilization Ratio Calculator Calculator Usage Guide

Learn how to use the Credit Utilization Ratio Calculator calculator and its working principles

What is Credit Utilization Ratio?

Credit utilization ratio is the percentage of your total available credit that you're using. It's one of the key factors that credit bureaus consider when determining your credit score.

How to Use the Calculator

  1. Enter your Total Credit Limit in the first input field. This is the maximum amount of credit you have available across all your credit cards.
  2. Enter your Current Credit Balance in the second input field. This is the amount you currently owe on all your credit cards.
  3. Click the Calculate button to see your credit utilization ratio and a recommendation based on your score.

Interpreting Your Results

A lower credit utilization ratio is generally better for your credit score. Here are some general guidelines:

  • Below 30%: Excellent - This is considered a good range for maintaining a healthy credit score.
  • Between 30% and 50%: Moderate - You might want to try to reduce your utilization further.
  • Between 50% and 70%: High - This can negatively impact your credit score, and you should focus on paying down your balances.
  • Above 70%: Very High - This is considered a red flag for lenders and can significantly lower your credit score.

Important Notes

Your credit utilization ratio is calculated for each individual credit card as well as across all your credit cards. The higher of the two ratios will have the most impact on your credit score.