Debt to Credit Ratio Calculator

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Debt-to-Credit Ratio Calculator

Calculate your credit utilization percentage instantly

Your Credit Utilization Ratio
0%

Understanding Your Debt-to-Credit Ratio

The debt-to-credit ratio, often called the credit utilization ratio, is a critical metric used by credit bureaus to determine your creditworthiness. It measures the amount of revolving credit you are currently using compared to the total amount of revolving credit available to you.

How is it Calculated?

To find your ratio, you sum up all your credit card balances and divide that total by the sum of all your credit limits. The formula is:

(Total Credit Balances ÷ Total Credit Limits) × 100 = Utilization %

Why This Number Matters

Your utilization ratio accounts for approximately 30% of your FICO® Score. Generally, a lower ratio is better for your credit score. Lenders view a high ratio as a sign that you may be overextended and at higher risk of defaulting on payments.

Utilization Benchmarks

  • Excellent (Less than 10%): Highly recommended for the best credit scores.
  • Good (10% – 30%): Considered responsible credit management.
  • Fair (30% – 50%): May start to negatively impact your score.
  • Poor (Above 50%): High risk; likely causing significant damage to your credit score.

Example Calculation

Suppose you have two credit cards:

  • Card A: $1,000 balance / $5,000 limit
  • Card B: $2,000 balance / $5,000 limit

Your total balance is $3,000 and your total limit is $10,000. Your ratio is ($3,000 / $10,000) × 100 = 30%.

function calculateRatio() { var balance = parseFloat(document.getElementById('totalBalance').value); var limit = parseFloat(document.getElementById('totalLimit').value); var resultArea = document.getElementById('resultArea'); var output = document.getElementById('utilizationOutput'); var status = document.getElementById('statusLabel'); var rec = document.getElementById('recommendationText'); if (isNaN(balance) || isNaN(limit) || limit <= 0) { alert("Please enter valid numbers. The total credit limit must be greater than zero."); return; } var ratio = (balance / limit) * 100; var ratioFixed = ratio.toFixed(1); resultArea.style.display = 'block'; output.innerText = ratioFixed + "%"; if (ratio < 10) { status.innerText = "Excellent"; status.style.backgroundColor = "#def7ec"; status.style.color = "#03543f"; rec.innerText = "Your utilization is exceptional. This level of management helps maximize your credit score."; } else if (ratio <= 30) { status.innerText = "Good"; status.style.backgroundColor = "#e1effe"; status.style.color = "#1e429f"; rec.innerText = "This is a healthy ratio. Financial experts generally recommend keeping utilization below 30%."; } else if (ratio <= 50) { status.innerText = "Fair"; status.style.backgroundColor = "#fef3c7"; status.style.color = "#92400e"; rec.innerText = "Your utilization is starting to creep up. Reducing your balances could help improve your credit score."; } else { status.innerText = "High Utilization"; status.style.backgroundColor = "#fde8e8"; status.style.color = "#9b1c1c"; rec.innerText = "Caution: High utilization can significantly lower your credit score. Aim to pay down balances quickly."; } }

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