Credit Utilization Ratio Calculator
Calculate your credit utilization ratio and see how much to pay down to reach the 30% and 10% thresholds lenders reward.
How it works
Utilization % = total balances ÷ total credit limit × 100 · Pay-down to target = balance − limit × target%
Credit utilization is the share of your available revolving credit you are currently using, and it is one of the largest factors in a credit score after payment history. Scores generally favor utilization under 30%, and the best scores tend to sit under 10%. Because it is calculated from the balance reported to the bureaus, paying down before the statement closes — not just before the due date — is what actually lowers the reported ratio.
Worked example
Owing $3,200 against a $10,000 limit is 3,200 ÷ 10,000 = 32% utilization — just over the 30% guideline. Paying $200 (to a $3,000 balance) reaches 30%; paying $2,200 (to $1,000) reaches the 10% ideal.
Frequently asked questions
What is a good credit utilization ratio?
Under 30% is the common guideline, and under 10% is associated with the strongest scores. 0% is not ideal either — a small reported balance shows active, managed use of credit.
Should I calculate it per card or overall?
Both matter. Scoring models look at your overall utilization across all cards and at each individual card, so a single maxed-out card can hurt even if your total is low.
When should I pay to lower the reported ratio?
Pay down the balance before the statement closing date, not just before the due date. The balance reported to the bureaus is usually the statement balance, so that is the number that sets your utilization.
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Educational estimate, not financial advice.