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Calculation Machine

Credit Utilization Calculator

Your utilisation ratio and the payment to reach 30%.

Reviewed by James Whitfield · How we check our maths

Your values

ⓘ Live results

Results
Current utilisation
37.78%
Pay down to hit target
$2,500.00
Rating
Fair
Limit increase needed instead
$25,000.00

Quick answer

Credit utilisation is total balances divided by total limits. Under 30% is good; under 10% is excellent.

The formula

utilisation = balances / limits x 100

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Total balances3400 $
  • Total credit limits9000 $
  • Target utilisation10 %

Result

  • Current utilisation37.78%
  • Pay down to hit target$2,500.00
  • RatingFair
  • Limit increase needed instead$25,000.00

How to use the Credit Utilization Calculator

  1. 1Add up balances across all revolving accounts.
  2. 2Add up the credit limits on those accounts.
  3. 3Pay down before the statement date, not the due date.

Frequently asked questions

Does utilisation have memory?

No. It resets each statement, so a single high month has only a temporary effect.

Should I close unused cards?

Closing cuts your total limit and raises utilisation — usually keep them open.

About this calculator