Credit utilization calculator

For information only — not credit or financial advice. A score depends on your full credit report and the model used. How we check our calculators.

What the ratio tells a lender

Credit utilization measures how much of your revolving credit is in use. It is the part of your credit score that you can change fastest, because it reflects balances rather than history. Nothing in it needs a long track record: pay a balance down and the ratio is lower the next time your issuer reports.

The formula

For one card, utilization = balance ÷ credit limit × 100. For all cards together, utilization = total balances ÷ total limits × 100. To reach a target t (as a percent), the balance you can leave is t% of the limit, so the payment is balance − t% × limit, and zero if you are already under. Our table gives two figures: the payment that brings the combined ratio to the target, and the larger total needed if you want every single card at or under the target.

Worked example

Card 1: $3,900 owed on a $6,000 limit (65%). Card 2: $450 owed on $4,000 (11.3%). Combined, $4,350 of $10,000 is 43.5%. For a 30% target, you can leave $3,000 on the cards, so pay $1,350. If you want each card at 30% or lower, card 1 must drop to $1,800: that is $2,100 in all. For a stricter 10% target the combined payment becomes $3,350. These are example numbers, not typical ones.

Common mistakes and limits of this method

• Treating 30% as a cliff. The CFPB gives 30% as expert advice; myFICO names no cutoff. A drop from 31% to 29% is not a known step.
• Using today's balance. The score uses what was reported. A balance you paid off yesterday may not have been reported yet, and a balance you pay down after the report date will not show until the next one.
• Closing the card after paying it off. The limit leaves your total with it, and the ratio on your remaining cards rises if they carry balances (see the closing question above).
• Ignoring installment loans. Utilization here means revolving accounts. Mortgages and car loans count toward your total debt but not toward this ratio.
• Expecting a number for your score. The calculator gives a ratio. How much your score moves depends on the rest of your report.

Weights of the FICO categories

Payment history 35% · Amounts owed 30% · Length of credit history 15% · New credit 10% · Credit mix 10% (myFICO). Amounts owed, which holds utilization, is the second largest. Payment history is the largest, so a late payment costs more than a high balance.

What is credit utilization and how is it calculated?

Credit utilization is the share of your available revolving credit that you are using: the balances reported on your credit cards divided by their credit limits, times 100. Add up every balance and every limit for the overall figure; divide one card's balance by its own limit for that card's figure. Two cards with $3,900 owed of $6,000 and $450 owed of $4,000 give 65% and 11.3% card by card, and $4,350 of $10,000, or 43.5%, overall. myFICO groups this under "amounts owed", defined as how much debt you carry in total and how much of your available credit you are using.

What is a good credit utilization ratio?

There is no official cutoff in the scoring model. The Consumer Financial Protection Bureau says experts advise using no more than 30 percent of your total credit limit, and that is where the "30% rule" comes from. myFICO's own description of the score names no percentage: it says using a lot of your available credit may lead lenders to assume you are overextended, and that carrying debt does not by itself make you high-risk. Treat 30% as a rule of thumb, not a threshold where your score jumps. In general, lower use of your limit reads as lower risk.

How much of my score is utilization?

FICO publishes five categories and their weights: payment history 35%, amounts owed 30%, length of credit history 15%, new credit 10%, credit mix 10%. Utilization sits inside amounts owed (30%), which also covers total debt. The CFPB adds that you do not have just one credit score: each depends on the data and the model used.

Which balance counts: the statement balance or what I owe today?

The balance your card issuer reports to the credit bureaus is the one that is scored, not the balance on the day you apply for a loan. Issuers choose when to send their data, so the reported balance can differ from the figure on your online account. To see which balance was reported, look at the account lines on your credit report. This calculator takes whatever balances you type in, so use the reported figures when you want to predict what a lender will see. We did not find a CFPB page that states the reporting date for all issuers, so check with yours.

Should I close a card I do not use?

Be careful. The CFPB warns that if you close card accounts and put most or all of your balances onto one card, it may hurt your score when that means using a high percentage of your total limit. With the example above, closing the $4,000 card and moving its $450 balance to the other card leaves $4,350 on a $6,000 limit, 72.5%, instead of 43.5%. Closing a card also reduces your total available credit; the length-of-history effect is a separate question that your card's age decides.

Do I need to carry a balance to build credit?

No. The CFPB says you do not need to carry a balance on credit cards to get a good score, and that you do not need outstanding debt at all; paying the balance in full each month helps get the best scores and keeps interest costs as low as possible. What matters is the balance that is reported while it is on the card, which is why paying a balance down before the issuer reports it can lower your reported utilization even if you pay in full by the due date.

Is it better to pay down a balance or ask for a higher limit?

Both lower the ratio, but only paying down lowers your debt. In the example, getting to 30% overall takes a payment of $1,350 ($4,350 owed minus 30% of $10,000). Leaving the balances alone, you would need total limits of $14,500. A limit increase may involve a credit inquiry (ask the issuer first), and it only helps if you do not spend the extra room.

Sources, checked October 28, 2026: myFICO, myfico.com/credit-education/whats-in-your-credit-score (category weights and the definition of amounts owed); Consumer Financial Protection Bureau, How do I get and keep a good credit score? (30 percent advice, closing cards, carrying a balance) and What is a credit score?. Related: credit card payoff calculator, credit card interest calculator, debt payoff calculator and loan payoff calculator. How we check our calculators.