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Credit Utilisation Calculator

Utilisation — the share of your revolving limits you are using — is one of the heaviest factors in a Canadian credit score. This calculator works it out per account and overall, and shows the balance reduction needed to reach a target.

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By the LoanLoon editorial teamLast reviewed 18 September 2026Checked against primary sources
Revolving accounts

Enter each debt's balance, its interest rate and the payment you currently make. Debts with a zero payment are skipped.

Result

Enter your figures above and submit to see the result.

Fixed rate for the whole term; no fees, insurance or taxes unless a field says otherwise. Results are estimates, not offers.

Utilisation is the balance divided by the limit, expressed as a percentage. Credit scoring models consider it both per account and in total, so one maxed card can hurt even when your overall ratio looks acceptable. Lower is generally better, and keeping every account below roughly 30% is a widely used planning benchmark rather than a scoring rule.

The calculator also shows the reduction needed to reach a target ratio, which converts an abstract percentage into a concrete dollar figure you can plan against. The most efficient move is usually to attack the highest-utilisation account first, because that is where the ratio improves fastest per dollar repaid.

Closing a paid-off card is not always the right answer: it reduces your total available limit, which can raise your overall utilisation. Keeping the account open with a zero balance is often better for the ratio.

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LoanLoon is not a lender. We do not make credit decisions, set rates, or guarantee approval. The lowest rates are only available to the most qualified applicants.

The figure above is arithmetic, not an offer. A lender's real rate, payment and total cost depend on its own underwriting, on your credit profile and on your province. loanloon.ca is a matching and comparison service — not a lender, a broker of record, or a credit counsellor. We do not make loans, set rates or make credit decisions. The lowest rates are only available to the most qualified applicants.

Frequently asked questions

What is a good credit utilisation ratio?

Lower is generally better, and keeping every account under roughly 30% is a common planning benchmark. Both per-account and overall utilisation matter to scoring models.

Does paying off a card improve my score immediately?

Issuers typically report balances to the credit bureaus monthly, so an improvement usually appears on the next reporting cycle rather than instantly.

Should I close a credit card I have paid off?

Usually not. Closing it reduces your total available limit and can raise your overall utilisation. Keeping it open with a zero balance is often the better choice.

Is this calculator free to use?

Yes. Every calculator on loanloon.ca runs in your browser and is free. Nothing you type is sent to us or stored.

Does the result guarantee what a lender will offer me?

No. The output is an estimate based on the figures you enter. Actual rates, payments and approval are decided by the lender.

The lowest rates are only available to the most qualified applicants — what does that mean?

It means the best advertised pricing is reserved for borrowers with the strongest credit profiles, income and debt-service ratios. Most borrowers are offered something different.

Sources and further reading