Enter the total amount of open credit balances and the total credit limit on all lines of credit to determine the credit utilization ratio.

## Credit Utilization Ratio Formula

The following formula is used to calculate a credit utilization ratio.

CU = TB / TCL *100

- Where CU is the credit utilization ratio (%)
- TB is the total credit balances ($)
- TCL is the total credit limit ($)

## Credit Utilization Ratio Definition

A credit utilization ratio is a measure of the total percentage or proportion of the total available credit limit that a person uses at any given time.

## Credit Utilization Ratio Example

How to calculate a credit utilization ratio?

**First, determine the total credit balances.**Add together all of the balances on open credit cards/ credit lines.

**Next, determine the total available credit.**Add together all of the credit limits together to find the total.

**Finally, calculate the credit utilization.**Calculate the credit utilization using the formula above.

## FAQ

**What is a credit utilization ratio?**

A credit utilization ratio is the portion of available credit that a person uses at any given time.