Two calculations that answer different questions Credit utilization is the share of a revolving credit limit represented by a balance. FICO explains that its scoring considers utilization and that a reported balance may differ from today's app balance. Lower utilization can help a credit profile, but a ratio is not a promise of a particular score. Our calculator measures balances; it does not reproduce any scoring model.
For an individual card, divide its balance by its limit and multiply by 100. For a combined ratio, add all included balances, add all their limits, then divide those totals. Do not average the individual percentages unless the limits happen to be equal. That shortcut can give a misleading answer.
Worked example: why averaging fails Suppose Card A has a $900 balance and a $1,000 limit, while Card B has a $300 balance and a $3,000 limit. Card A is at 90%; Card B is at 10%. Averaging those figures gives 50%, but the combined calculation is $1,200 divided by $4,000, or 30%. The larger limit changes the weighting.
Now imagine you have $400 available after necessary bills and minimum payments. Paying it to Card A leaves balances of $500 and $300. Combined utilization becomes $800 divided by $4,000, or 20%. Card A becomes 50%. Paying the same $400 across the cards differently can produce the same overall ratio but different individual ratios. This is why we display both.
Choose a target as a planning input You can use a target percentage to ask how much money would be needed, without treating that percentage as a scoring boundary. For a card, target balance equals limit multiplied by target percentage divided by 100. Required payment is current balance minus target balance, with a minimum of zero.
For Card A, a 30% planning target means a target balance of $300. Starting from $900, the arithmetic difference is $600. A 20% target would require $700. These amounts assume no intervening purchases, interest, fees, or limit changes. The calculator's target applies to every included card separately; it is stricter than merely targeting the combined percentage.
Decide whether the objective is interest or a reported ratio An interest-saving plan and a ratio-reduction plan can prioritize cards differently. If Card B has a much higher APR, extra money sent there might save more interest even while Card A remains closer to its limit. Write down your immediate objective before deciding. Do not sacrifice rent, food, or an upcoming minimum payment just to reach a cosmetic percentage.
Ask the issuer when it normally reports your balance, and allow time for payments to post. Do not assume a payment made on the due date will be reflected in every report immediately. Compare your later report with the reporting date rather than assuming the calculation was wrong because the app changed first.
Handle unusual inputs honestly A card above its limit can produce a ratio greater than 100%; do not cap it to make the result look better. A zero limit cannot be used as a denominator. Our tool asks you to correct that input rather than pretending the card contributes unlimited capacity. Enter debts such as auto loans elsewhere; they are not revolving card limits for this worksheet.
Use approximate balances if you prefer. Nothing you enter in our calculator is saved by its code or submitted to us. Make a note of the date, choose a payment you can afford, then compare the actual result with the assumptions. The goal is a repeatable process, not a promise that one payment will erase the rest of a credit history.
References for this expanded guide
These links support background facts. The examples and worksheets are original teaching exercises, not quoted official recommendations.
Use the worksheet
Download the blank CSV and fill it in privately in a spreadsheet app. It is an organizational template; it contains no automatic formulas. Use account nicknames, not account numbers. Do not upload the completed file to this website.
Download this guide’s worksheet (CSV) · Browse all worksheets
Suggested fields: Card nickname, Report date, Reported balance, Credit limit, Ratio, Proposed payment, New balance, New ratio.
