Credit
Available credit
The headroom left before the accounts are full. It is what a limit increase adds to.
The Formula
available = total limits - total balances
The headroom left before the accounts are full. It is what a limit increase adds to.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| A | Available credit | currency | Unused headroom across the accounts. |
| L | Total limits | currency | Sum of credit limits. |
| B | Total balances | currency | Sum of balances. |
What Each Symbol Means
Acurrency
Available credit
Unused headroom across the accounts.
Lcurrency
Total limits
Sum of credit limits.
Bcurrency
Total balances
Sum of balances.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate credit utilization page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Credit Utilization, filed under Finance. Every number the guide produces comes from substituting into this one line.