Debt to Limit Ratio Calculator

Formula

The formula to calculate the Debt to Limit Ratio is:

\[ DLIR = \frac{OD}{CL} \times 100 \]

Where:

$DLIR$ is the Debt to Limit Ratio (%)
$OD$ is the total outstanding debt ($)
$CL$ is the total credit limit ($)

What is a Debt to Limit Ratio?

The Debt to Limit Ratio is a measure of the amount of debt you have relative to your total credit limit. It is calculated by dividing your total outstanding debt by your total credit limit and multiplying the result by 100 to get a percentage. This ratio is important for understanding your credit utilization and financial health.

Example Calculation

Let's assume the following values:

Total Outstanding Debt (OD) = $5000
Total Credit Limit (CL) = $20000

Using the formula:

\[ DLIR = \left( \frac{5000}{20000} \right) \times 100 = 25\% \]

The Debt to Limit Ratio (DLIR) is 25%.