Credit Utilization Calculator: Ratio and How Much to Pay Down
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Credit utilization is your total card balances divided by your total credit limits. Owing $5,600 on $16,000 of limits is a 35% utilization.
Utilization above 30% is commonly linked with lower credit scores. Paying down balances or asking for a higher limit can help.
You use $5,600 of $16,000 in available credit, which is 35.0%. To reach 30%, pay down about $800.
Card by card
| Card | Limit | Balance | Utilization | Balance at 30% |
|---|---|---|---|---|
| Card 1 | $8,000 | $3,200 | 40.0% | $2,400 |
| Card 2 | $5,000 | $900 | 18.0% | $1,500 |
| Card 3 | $3,000 | $1,500 | 50.0% | $900 |
Show the steps
- Total balances: $5,600.00. Total limits: $16,000.00.
- Utilization: $5,600.00 ÷ $16,000.00 = 35.00%.
- Balance allowed at 30%: $16,000.00 × 30% = $4,800.00. Pay down $5,600.00 − $4,800.00 = $800.00.
Credit utilization
Utilization = total balances ÷ total credit limits × 100
- Scoring models look at overall and per-card utilization. This calculator does not predict a score.
- Your balance usually counts as of the statement date, so paying before the statement closes can lower the reported figure.
Estimates for planning and learning, not financial, tax, legal or medical advice. Check figures with your lender, tax preparer or doctor before you act.
About this calculator
Credit utilization is one of the factors credit scoring models consider. A lower ratio usually looks better. Many guides suggest staying under 30%, and people with the best scores often use under 10%.
Enter your cards, and the calculator finds your overall and per-card ratios and the payment needed to reach a target.
How to use it
- Enter the credit limit and current balance of each card. Leave unused rows at zero.
- Choose a target utilization.
- Read your ratio and the amount to pay down.
Ways to lower utilization
- Pay balances down, especially on the card with the highest ratio.
- Pay before the statement closing date.
- Ask for a credit limit increase, without increasing spending.
- Keep old cards open so their limits still count.
Sources
Quick check: test yourself
You owe $4,000 on a card with a $10,000 limit. What is your utilization?
Correct answer: 40%. $4,000 ÷ $10,000 = 0.40.
What utilization is commonly suggested as an upper limit?
Correct answer: Below 30%. Many guides suggest staying under 30%, and lower is better.
Which can lower utilization without paying down debt?
Correct answer: A higher credit limit. A higher limit raises the denominator.
Pick an answer for each question.
Common questions
How do I calculate credit utilization?
Divide the total of your card balances by the total of your credit limits.
What is a good utilization ratio?
Under 30% is a common guideline. Under 10% is better.
Does 0% utilization help?
Using none can be fine, but showing a small balance can be just as good for many scoring models.
Does closing a card hurt?
It can raise utilization by lowering your total available credit.
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