The formula
The CFPB describes the credit utilization ratio as the amount of credit you are using divided by the total amount you have available. As a percentage, that is balance divided by credit limit, times 100.
Why people look at it
The CFPB says scoring models look at how close you are to your limit, and that keeping balances low in proportion to your overall limit is part of managing a score. Different companies use different scoring formulas, so there is no single rule that applies everywhere. This site does not set a target percentage.
One card or several
With one card, divide that card’s balance by its limit. With several, you can add the balances and add the limits, then divide. How a given score treats individual cards and overall totals varies, so treat the result as a snapshot of your own numbers, not as a prediction.
When the balance is above the limit
A balance can be higher than the limit, for instance after fees or interest. The ratio is then above 100%. The calculator allows this and shows the result plainly.
Closing a card changes the math
The CFPB notes that closing an existing card can increase your utilization ratio and lower your score, so think about the effect on your total available credit before closing one.
Hypothetical example
A card has a $1,000 limit and a $300 balance: 300 ÷ 1,000 × 100 = 30%. With two cards, one with a $200 balance and a $1,000 limit and one with a $400 balance and a $1,000 limit, the combined figure is $600 ÷ $2,000 = 30%.
These numbers are invented. Using the same math with your own figures shows your current ratio and nothing more.
Quick checklist
- Use your current balance and credit limit from your statement or account.
- Check that the limit is greater than zero.
- Decide whether you want one card or a combined total.
- Consider the effect on your total limit before closing a card.
- Remember: this is arithmetic, not a score forecast.
Sources
- CFPB: Understand your credit score (opens in a new tab)
- CFPB: Does it hurt my credit to close a credit card? (opens in a new tab)
Sources checked October 13, 2026.