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How a credit utilization calculator improves your credit health
Credit utilization is the percentage of available credit you are using on revolving accounts like credit cards. The formula is straightforward: divide your total balances by your total credit limits, then multiply by 100. A balance of $2,500 against a $10,000 limit equals 25% utilization. This single ratio is one of the largest factors in your FICO and VantageScore credit scores, second only to payment history.
Most credit experts recommend staying under 30% utilization to avoid a noticeable score drop. People with the highest scores often keep utilization below 10%. This calculator shows both your per-card utilization and your overall utilization, then tells you exactly how many dollars you need to pay down to reach the 30% and 10% targets. Even one card with a very high balance can hurt your score, so the per-card view is useful for identifying which account to pay down first.
To explore strategies for lowering utilization and improving credit, read our credit utilization guide, credit score improvement tips, or build a payoff plan with our Debt Payoff Calculator. Always verify your latest statement balances with your credit card issuer before making payments.