Credit Utilization Ratio Calculator

Credit Utilization

20%

Utilization CategoryGood

The Numbers

  • Already at or under the commonly-cited 30% guideline

Analysis

  • Credit utilization is commonly cited as one of the most heavily-weighted factors in consumer credit scoring, second only to payment history — keeping it under 30% is a widely-repeated guideline, with under 10% often cited for the best scores.

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Disclaimer

This calculator provides estimates for informational purposes only and does not constitute financial, medical, legal, or tax advice. Always consult a qualified professional about your specific situation.

How This Calculator Works

Credit utilization is your total revolving credit balances divided by your total credit limits, expressed as a percentage — one of the most heavily-weighted factors in most consumer credit scoring models. Enter your total balances and total credit limits across all your revolving accounts, and this calculator shows your utilization ratio and where it falls against commonly-cited credit-score guidance.

Unlike payment history, which only reflects past behavior, utilization can change the moment a balance is paid down — making it one of the faster levers available for someone looking to improve their credit standing.

The Formula

Credit Utilization=Total BalancesTotal Credit Limits×100\text{Credit Utilization} = \frac{\vA{\text{Total Balances}}}{\vB{\text{Total Credit Limits}}} \times 100

The result is then compared against commonly-cited guidance bands:

UtilizationCategory
Under 10%Excellent
10% to 29%Good
30% to 49%Fair
50% or aboveHigh

Worked Example

$2,000 in total balances across $10,000 in total credit limits:

  1. Credit Utilization=2,000÷10,000×100=20%\text{Credit Utilization} = \vA{2{,}000} \div \vB{10{,}000} \times 100 = 20\%.
  2. 20% falls in the Good category, comfortably under the commonly-cited 30% guideline.

Source: Consumer Financial Protection Bureau (CFPB): credit utilization ratio guidance.

Frequently Asked Questions

What is credit utilization?

Credit utilization is your total revolving credit balances (mainly credit cards) divided by your total credit limits, expressed as a percentage. It's one of the most heavily-weighted factors in most consumer credit scoring models, second only to payment history.

What is a good credit utilization ratio?

A commonly-cited guideline is keeping overall utilization under 30%, with under 10% often cited as ideal for the best scores. Lower is generally better, though 0% (no balances reported at all) isn't necessarily optimal either in every scoring model — check your specific card issuer or scoring model's own guidance for details.

Does this look at each card separately or all cards combined?

This calculates overall utilization across all cards combined. Most scoring models also look at PER-CARD utilization — maxing out one card while others sit empty can still hurt your score even if the combined ratio looks fine, so it's worth checking individual cards too, not just the total.