Credit Utilization Formula
Credit utilization, often called the credit utilization ratio, is a critical factor in determining your credit score. It measures how much of your available revolving credit you are currently using, expressed as a percentage.
Formula
Copy the exact expression or work through it step by step below.
Credit Utilization = Revolving Balance / Total Credit Limit x 100 Variables
CU
Credit Utilization
The credit utilization value plugged into the credit utilization calculation.
RB
Revolving Balance
The revolving balance value plugged into the credit utilization calculation.
TCL
Total Credit Limit
The total credit limit value plugged into the credit utilization calculation.
Step By Step
- 1
Set the baseline case with the real calculator inputs.
Cards = [{"name":"Chase","balance":1500,"limit":5000},{"name":"Amex","balance":800,"limit":10000}]
- 2
Translate rates, periods, and cash values onto the same footing before combining them.
Keep the credit utilization assumptions consistent instead of mixing monthly and annual views.
- 3
Apply the formula and read the first calculator outputs, not just the headline assumption.
The calculator lands with total balance at $2,300 and total limit at 15,000.
- 4
Run one changed scenario so the formula is stress-tested before it is trusted.
The credit utilization calculator page is the fastest way to compare that second case.
Worked Example
Credit Utilization sample case
Cards
- #1
Chase
Name
- Balance
- 1500
- Limit
- 5000
- #2
Amex
Name
- Balance
- 800
- Limit
- 10000
Credit Utilization = Revolving Balance / Total Credit Limit x 100 using cards [{"name":"Chase","balance":1500,"limit":5000},{"name":"Amex","balance":800,"limit":10000}].
The calculator lands with total balance at $2,300 and total limit at 15,000.
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Sources & References
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