BizJourney
Home › Formulas › Credit utilization

How to calculate Credit utilization

The Credit utilization formula, with plain worked examples you can check yourself.

Credit utilization = B ÷ L × 100

The result is a percentage (%).

Worked examples

B = 1000 · L = 10000Credit utilization = 10%
B = 600 · L = 2000Credit utilization = 30%
B = 6000 · L = 20000Credit utilization = 30%

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Cash & Liquidity.

Related terms

Cash flowLiquidityWorking capitalOverdraft

Practice Credit utilization with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →