# What is my credit utilization rate?

Finds your credit utilization ratio, total card balances ÷ total credit limits, overall and for each card, and how much to pay down to get under a target such as 30%.

- Page: https://www.acalculator.org/finance/credit-utilization-calculator
- JSON spec: https://www.acalculator.org/finance/credit-utilization-calculator.json
- Version: e7e83254128c

## Default answer

Example with the default inputs (Credit cards [Balance $1,200.00, Credit limit $5,000.00; Balance $1,800.00, Credit limit $3,000.00], Target utilization 30%): Your credit utilization is 37.5%, above 30%.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| cards | Credit cards | One row per credit card or credit line: what you owe now and its credit limit. |
| t | Target utilization | The utilization you want to get under. CFPB suggests keeping it below 30%. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| utilization | Overall utilization | Total balances ÷ total credit limits × 100. |
| balance | Total balances | All the balances added up. |
| limit | Total credit limit | All the credit limits added up. |
| available | Credit available | Total limit minus total balances (negative when over the limit). |
| payDown | Pay down to reach the target | How much to pay off the total balances to bring overall utilization down to the target; $0 if you are there. |
| highest | Highest card | The highest utilization on any one card. |
| perCard | Each card | Each card’s balance ÷ limit, in the order typed, rounded to 2 decimals. |
| verdict | Compared with the target | Whether overall utilization is at or under the target, or above it. |

## Method

Utilization = total balances ÷ total credit limits × 100; each card = its balance ÷ its limit × 100; pay down = total balances − target% × total limits, or $0 if already at or under the target.

## Assumptions

- Only revolving credit (credit cards and credit lines) counts; installment loans have no limit to compare with.
- Balances are what the card issuer reports, usually the statement balance, not what you owe after a payment.
- Credit scoring models may weigh overall and per-card utilization in their own ways; this page shows the ratios, not a score.

## Worked examples

1. cards = {"balance":1200,"limit":5000} or {"balance":1800,"limit":3000}, t = 30% gives utilization = 37.5%, balance = $3,000.00, limit = $8,000.00, available = $5,000.00, payDown = $600.00, highest = 60%, perCard = Card 1: 24%; Card 2: 60%, verdict = above 30%. Source: CFPB, Credit score myths that might be holding you back from improving your credit (divide your total credit card balances by your credit limits to get the credit utilization ratio; keeping it under 30 percent shows lenders you have available credit), https://www.consumerfinance.gov/archive/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/ (retrieved 2026-10-02).
2. cards = {"balance":500,"limit":2000} or undefined, t = 30% gives utilization = 25%, payDown = $0.00, verdict = at or under 30%. Source: CFPB, Credit score myths that might be holding you back from improving your credit (divide your total credit card balances by your credit limits to get the credit utilization ratio; keeping it under 30 percent shows lenders you have available credit), https://www.consumerfinance.gov/archive/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/ (retrieved 2026-10-02).
3. cards = {"balance":0,"limit":10000} or {"balance":2500,"limit":2500}, t = 10% gives utilization = 20.98763%, balance = $2,833.33, limit = $13,500.00, payDown = $1,483.33, perCard = Card 1: 0%; Card 2: 100%; Card 3: 33.33%, verdict = above 10%. Source: CFPB, Credit score myths that might be holding you back from improving your credit (divide your total credit card balances by your credit limits to get the credit utilization ratio; keeping it under 30 percent shows lenders you have available credit), https://www.consumerfinance.gov/archive/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/ (retrieved 2026-10-02).

## FAQ

### What is credit utilization?

The share of your available revolving credit that you are using: your credit card balances divided by your credit limits. The CFPB calls it the credit utilization ratio, and it is one of the things credit scores look at.

### How do I calculate my credit utilization?

Add up the balances on all your cards, add up their credit limits, divide, and multiply by 100. With $1,200 on a $5,000 card and $1,800 on a $3,000 card: $3,000 ÷ $8,000 = 37.5%.

### What is a good credit utilization?

The CFPB says experts advise keeping it at no more than 30 percent of your total credit limit, and that a low ratio shows lenders you have credit available. Lower is generally better.

### How much do I need to pay to get under 30%?

Pay down total balances − 30% × total limits. In the example, 30% of $8,000 is $2,400, so paying $600 brings $3,000 down to $2,400, exactly 30%.

### Does utilization count per card or overall?

Both can matter. Scoring models look at your total utilization and may also look at each card, so a single maxed-out card can count against you even when the total is low. The page shows each card and the highest one.

### Does closing a card raise my utilization?

It can. Closing a card removes its limit from the total, so the same balances are a larger share of less credit. The CFPB gives this as a reason closing cards can lower your scores.

### Which balance should I use?

Usually the statement balance, because that is what most issuers report to the credit bureaus. Paying before the statement closes lowers the reported balance.

## Sources

- CFPB, Credit score myths that might be holding you back from improving your credit (divide your total credit card balances by your credit limits to get the credit utilization ratio; keeping it under 30 percent shows lenders you have available credit; closing cards while keeping the same balance raises the share you use). https://www.consumerfinance.gov/archive/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/ (retrieved 2026-10-02)
- CFPB, Understand your credit score (how close you are to your credit limit affects your score; keep your use of credit at no more than 30 percent of your total credit limit). https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/understand-your-credit-score/ (retrieved 2026-10-02)