How this calculator works
Credit utilization is how much of your available card credit you're using: total balances ÷ total credit limits × 100. Scoring models look at it overall and card by card, using the balance your issuer reports, usually the statement balance. The calculator shows both, and how much to pay down to get under 30% and 10%.
- Credit utilization = total card balances ÷ total credit limits × 100.
- Per-card utilization = that card's balance ÷ its limit × 100.
- Paydown to reach a target = balances − limits × target % (zero if you're already under).
Worked example
With these inputs: balance $1,200; credit limit $3,000; balance $800; credit limit $5,000.
The result is overall credit utilization 25.0%, with total balances / total limits $2,000.00 / $8,000.00 and pay down to get under 30% Already under. Utilization has no memory in most scores: pay the balance down before the statement closes and the lower number is what gets reported next month.
What is a good credit utilization ratio?
The CFPB advises keeping the credit you use under 30% of your total limits; lower is better, and people with the highest scores tend to stay under 10%. Scoring models look at the overall ratio and at each card, so one maxed-out card can hurt even when the total is low. In the example, paying $300 off Card 1 brings it to 30%.
How to lower your utilization quickly
Card issuers usually report your statement balance to the credit bureaus, so paying down before the statement closing date, not just the due date, lowers the number that gets reported. Utilization has no long memory in most scoring models: once the lower balance is reported, the effect follows within a month or two.
Other ways down: spread a balance across cards, ask for a higher limit (without spending more), and keep old cards open, since closing one removes its limit. Plan the paydown with the credit card payoff calculator, see what the balance costs each month with the credit card interest calculator, and list each card's due date in the bill tracker so a late payment doesn't undo the work.
Sources
Frequently asked questions
How do I calculate my credit utilization?
Add up the balances on all your credit cards, divide by the total of their credit limits and multiply by 100. $2,000 owed on $8,000 of limits is 25%.
What is a good credit utilization ratio?
Under 30% is the common guideline the CFPB repeats; under 10% is better. Both the overall ratio and each card's ratio count.
How much should I pay to get under 30% utilization?
Subtract 30% of your total limits from your total balances. With $2,000 owed on $8,000 of limits you're already under; on one card with $1,200 of $3,000 used, pay $300.
Does paying my card in full every month keep utilization low?
Not always. The issuer usually reports the statement balance, so a large balance can show up even if you pay it in full by the due date. Paying before the statement closes lowers the reported number.
Does closing a credit card raise utilization?
Yes, it removes that card's limit from the total. With the same balances, $2,000 on $8,000 is 25%, but on $3,000 it would be 66.7%.