Credit Utilization Ratio Calculator

Calculate Credit Utilization Ratio



Formula

To calculate the Credit Utilization Ratio (CU):

\[ CU = \frac{TB}{TCL} \times 100 \]

Where:

Credit Utilization Ratio Definition

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

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ CU = \frac{2000}{10000} \times 100 = 20 \]

The credit utilization ratio is 20%.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ CU = \frac{5000}{20000} \times 100 = 25 \]

The credit utilization ratio is 25%.