Utilization counts for about 30% of a FICO score. Keeping it below 30% is good and below 10% is excellent. Paying before the statement date lowers the balance reported to the bureaus.
How to use the Credit Utilization Calculator
- Card 1 balance
- Card 1 limit
- Card 2 balance
- Card 2 limit
- Card 3 balance
- Card 3 limit
- Card 4 balance
- Card 4 limit
- Card 5 balance
- Card 5 limit
- Target utilization
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the balance and limit of up to five cards and your target utilization.
Tips
- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.
Common mistakes to avoid
- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.
Inputs explained
| Field | What to enter |
|---|---|
| Card 1 balance | Amount in your currency |
| Card 1 limit | Amount in your currency |
| Card 2 balance | Amount in your currency |
| Card 2 limit | Amount in your currency |
| Card 3 balance | Amount in your currency |
| Card 3 limit | Amount in your currency |
| Card 4 balance | Amount in your currency |
| Card 4 limit | Amount in your currency |
| Card 5 balance | Amount in your currency |
| Card 5 limit | Amount in your currency |
| Target utilization | In % |
What each result means
- Total balances = [Card 1 balance] + [Card 2 balance] + [Card 3 balance] + [Card 4 balance] + [Card 5 balance]
- Total credit limits = [Card 1 limit] + [Card 2 limit] + [Card 3 limit] + [Card 4 limit] + [Card 5 limit]
- Overall utilization = [Total balances]÷[Total credit limits]×100
- Pay down to reach the target = max([Total balances] – [Total credit limits]×[Target utilization]÷100, 0)
Example values
How the main result changes when Card 1 balance changes and everything else stays at the example values above:
| Card 1 balance | Overall utilization (%) |
|---|---|
| 600 | 17.5 |
| 900 | 21.25 |
| 1,200 | 25 |
| 1,500 | 28.75 |
| 1,800 | 32.5 |
| 2,400 | 40 |
Formula
Utilization = balance ÷ credit limit × 100 (per card and overall)Balance to reach a target = target % × total limitWorked example
Inputs — Card 1 balance: $1,200; Card 1 limit: $5,000; Card 2 balance: $800; Card 2 limit: $3,000; Card 3 balance: $0; Card 3 limit: $0; Card 4 balance: $0; Card 4 limit: $0; Card 5 balance: $0; Card 5 limit: $0; Target utilization: 10 %.
Results — Total balances = $2,000.00; Total credit limits = $8,000.00; Overall utilization = 25 %; Card 1 utilization = 24 %; Card 2 utilization = 26.67 %; Card 3 utilization = 0 %; Pay down to reach the target = $1,200.00; Rating = Good (under 30%).
Frequently asked questions
What is a good credit utilization ratio?
Under 30%, ideally under 10%.
Does closing a card hurt utilization?
It can, because your total limit falls.
Is utilization per card or overall?
Both are considered by scoring models.
What formula does the Credit Utilization Calculator use?
Utilization = balance ÷ credit limit × 100 (per card and overall).