Enter the total outstanding debt ($) and the total credit limit ($) into the Debt to Limit Ratio Calculator. The calculator will evaluate and display the Debt to Limit Ratio.
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Debt to Limit Ratio Formula
The following formula is used to calculate the Debt to Limit Ratio.
DLIR = OD / CL * 100
- Where DLIR is the Debt to Limit Ratio (%)
- OD is the total outstanding debt ($)
- CL is the total credit limit ($)
How to Calculate Debt to Limit Ratio?
The following example problems outline how to calculate Debt to Limit Ratio.
Example Problem #1:
- First, determine the total outstanding debt ($).
- The total outstanding debt ($) is given as: 3,000.
- Next, determine the total credit limit ($).
- The total credit limit ($) is provided as: 9,000.
- Finally, calculate the Debt to Limit Ratio using the equation above:
DLIR = OD / CL * 100
The values given above are inserted into the equation below and the solution is calculated:
DLIR = 3,000 / 9,000 * 100 = 33.33 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total outstanding debt ($) = 600
total credit limit ($) = 1200
Test your knowledge using the equation and check your answer with the calculator above.
DLIR = OD / CL * 100 = ?
