Credit Utilization Calculator
Credit utilization compares what you owe on your cards with the total limit you have. It is one of the factors that credit scores consider.
Results
Overall utilization
15.6%
- Assessment
- Good
- Total balance
- ₹35,000
- Total credit limit
- ₹2,25,000
- Pay down to reach the target
- ₹0
- Balance at the target
- ₹67,500
You are using 15.6% of your total credit limit (₹35,000 of ₹2,25,000): good.
Utilization by card (3 rows)
| Card | Balance | Limit | Utilization |
|---|---|---|---|
| Card A | ₹25,000 | ₹1,00,000 | 25% |
| Card B | ₹10,000 | ₹50,000 | 20% |
| Card C | ₹0 | ₹75,000 | 0% |
Show the calculation steps
- Total balance = ₹35,000; total limit = ₹2,25,000.
- Utilization = balance ÷ limit × 100 = 15.6%.
- Balance at 30% of the limit = ₹67,500, so you would need to pay down ₹0.
- Credit scoring models weigh utilization differently. Lower utilization on each card and overall is generally better. Many guides suggest staying below about 30%.
Why it matters
A high utilization suggests you rely heavily on credit, which can lower your credit score. Keeping balances low relative to your limits, both overall and on each card, is generally better.
Ways to lower it
Pay balances down before the statement date, spread balances across cards, and ask for a limit increase without increasing your spending. Avoid closing old cards, which reduces your total limit.
Formula
Utilization = Total balances ÷ Total credit limits × 100
Where:
- Balance
- = What you currently owe on the cards
- Limit
- = The total credit limit on the cards
Example calculation
Three cards with ₹35,000 owed on ₹2,25,000 of limits
Inputs
- Target Utilization
- 30 %
Result
- Overall utilization
- 15.6%
- Assessment
- Good
- Total balance
- ₹35,000
- Total credit limit
- ₹2,25,000
- Pay down to reach the target
- ₹0
- Balance at the target
- ₹67,500
Step-by-step
- Total balance = ₹35,000; total limit = ₹2,25,000.
- Utilization = balance ÷ limit × 100 = 15.6%.
- Balance at 30% of the limit = ₹67,500, so you would need to pay down ₹0.
Important notes
- Scoring models differ. Issuers typically report your balance on the statement date, so a payment before then can lower the reported utilization.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
What is a good credit utilization ratio?
Below about 30% is often suggested, and lower is generally better.
Does utilization affect my credit score?
Yes. It is one of the main factors in many scoring models.
Should I close unused cards?
Closing a card reduces your total limit and can raise your utilization, so consider keeping it open.
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