How It Works
Utilization is calculated as revolving balance divided by revolving credit limit. The calculator shows both individual and combined utilization.
Individual utilization is each revolving balance divided by that account's credit limit. Overall utilization combines revolving balances and limits across the accounts you enter.
Utilization is a snapshot rather than a complete credit assessment. Credit reports and scoring models can use the balances reported by creditors at particular times, so the percentage shown here may differ from what a scoring model currently sees.
Formula
- B — Revolving balance
- L — Credit limit
Example
Example inputs: Balances of $500 and $1,000 on limits of $5,000 and $5,000.
Result: Combined utilization: 15%.
Frequently Asked Questions
Does utilization determine my credit score?
No. Credit scoring models consider multiple factors, and lenders may use different models.
Why can my reported utilization differ from this calculator?
Creditors may report balances on different schedules, while this calculator uses the balances and limits you enter at one point in time.
Does closing a credit card always lower utilization?
Not necessarily. Closing an account can remove available credit from the calculation and may increase overall utilization if balances remain elsewhere.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.