Credit Utilization Calculator
Find your credit utilization ratio and how much to pay down to reach the 30% and 10% targets lenders reward.
How it works
Utilization = total balances ÷ total credit limits × 100
Credit utilization is the share of your available revolving credit you are using, and it is one of the largest factors in a credit score — second only to payment history. Lower is better: scoring models reward keeping it under 30%, and the highest scores usually sit under 10%. It is measured both overall and per card, and it resets each statement, so paying balances down before the statement closes lowers the number reported.
Worked example
With $3,000 in balances against $10,000 in limits, utilization is 3,000 ÷ 10,000 = 30%. To drop to 10% you would pay the balance down to $1,000 — a $2,000 paydown. At exactly 30% you are already at the common target, but getting under 10% squeezes out extra points.
Frequently asked questions
What is a good credit utilization ratio?
Under 30% is the common guideline, and under 10% is where the highest scores tend to be. 0% is not ideal either — using a card lightly and paying it off shows active, responsible use.
Does utilization affect my score every month?
Yes. Unlike payment history, utilization has no memory — it is recalculated from your latest reported balances. Pay a card down and your score can improve within a statement cycle or two.
Should I close a card I don’t use?
Often no — closing it removes its limit from the total, which raises your utilization on the remaining balances. Keeping a paid-off card open helps your ratio and your average account age.
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This is an educational estimate, not financial advice. Lenders use their own rounding, fees and terms — confirm exact figures with your lender or a licensed advisor.