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Credit Utilization Calculator

Calculate your credit utilization ratio and optimize it for a better credit score.

Enter your credit card balances and limits

30.0% utilization
26.7% utilization

Total Credit Utilization

28.7%

$2,300 of $8,000

FICO Impact

Good — most lenders consider this acceptable. Aim for under 10% for the best score.

CardBalanceLimitUtilization
Card 1$1,500$5,00030.0%
Card 2$800$3,00026.7%
Total$2,300$8,00028.7%
Cards: 2
Available Credit: $5,700
Researched by CentCalc Financial Editorial TeamData: FICO 8 utilization bands (under 10/30/50/75%)

How This Is Calculated

Credit utilization is calculated by dividing your total credit card balances by your total credit limits, then multiplying by 100 to get a percentage. This ratio is computed both per-card and across all cards combined.

Formula: Utilization = (Total Balance ÷ Total Credit Limit) × 100. For example, if you have $2,000 in balances across cards with $10,000 in total limits, your utilization is 20%.

FICO impact thresholds: Below 10% is excellent (associated with 750+ scores), 10-30% is good, 30-50% is fair and may lower your score, and above 50% is considered high risk and will significantly impact your score.

Credit utilization is the second most important factor in your FICO score (about 30% weight), behind only payment history (35%). Unlike most credit factors, utilization has no memory — it resets each month when your balances are reported.

Utilization = balance / limit × 100. FICO scoring model weights utilization at ~30%. Data: FICO scoring methodology, Experian, TransUnion, Equifax.

Frequently Asked Questions

How does credit utilization affect my credit score?
Credit utilization accounts for about 30% of your FICO score — the second largest factor after payment history. FICO considers both per-card and overall utilization. Keeping utilization below 30% is generally recommended, while below 10% is considered excellent.
Should I close old credit cards I no longer use?
Generally, no. Closing a card reduces your total available credit, which increases your utilization ratio. It also shortens your average account age over time. If the card has no annual fee, keeping it open and using it occasionally is usually better for your score.
What is a good credit utilization ratio?
Below 30% is the commonly cited threshold for a "good" utilization ratio. Below 10% is considered excellent and is associated with the highest credit scores. People with 800+ FICO scores typically have utilization under 7%.
Does paying before the statement date help?
Yes. Most card issuers report your balance to credit bureaus on your statement closing date. If you pay down your balance before the statement closes, the lower balance is what gets reported. This is an effective strategy to keep reported utilization low.

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Estimates only. Credit score models vary. Actual impact depends on your full credit profile. Consult a financial advisor for personalized advice.