How to use this calculator
Add each of your credit cards by entering the card name, credit limit, and current balance. You can add as many cards as you have. The calculator computes your utilization ratio for each individual card and your overall utilization across all cards combined.
The results are color coded to show where you fall in the credit scoring ranges: green for utilization under 10% (excellent), yellow for 10% to 30% (good), and red for above 30% (needs improvement). Both individual card ratios and the overall ratio are displayed because credit scoring models evaluate both.
If your utilization is higher than your target, the calculator shows exactly how much you need to pay down on each card to reach your goal. You can also set a custom target percentage to plan payoff amounts for any utilization level you want to achieve.
Understanding credit utilization
Credit utilization measures how much of your available credit you are currently using. It is calculated by dividing your total credit card balances by your total credit limits. For example, if you have $3,000 in balances across cards with $10,000 in combined limits, your utilization is 30%.
This metric is one of the most important factors in your credit score. Keeping it low shows lenders you are not overly dependent on credit. The sweet spot for most scoring models is under 10%, though staying below 30% is considered acceptable.
Frequently asked questions
What is good credit utilization?
Under 30% is acceptable, under 10% is excellent. People with the highest credit scores typically keep utilization in the single digits.
Does utilization affect credit score?
Yes, significantly. It accounts for about 30% of your FICO score. The good news is that it has no memory. Once you pay down balances, your score can bounce back quickly.
Should I close unused credit cards?
Usually not. Closing cards reduces your total available credit, which raises your utilization ratio. If there is no annual fee, keeping the card open benefits your score.
Is 0% utilization good?
Not necessarily. Showing some activity (1% to 3%) can be slightly better than 0% because it demonstrates active, responsible credit use. Use a small amount and pay it off each month.