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How Capacity Utilization is Calculated

 , updated on September 13, 2017
Capacity utilization is the percentage of capacity that is actually used. It is calculated using actual output and capacity:
capacity utilization = (actual output / capacity) × 100

Facility Example

An office has a effective capacity of 430 employees and currently houses 401 employees.
capacity utilization = (401 / 430) × 100 = 93.26%

Production Example

A production line has a design capacity of 14,000 units a day. The line is currently running one shift and producing 830 units a day.
capacity utilization = (830 / 14000) × 100 = 5.93%

Service Example

An airline has monthly inventory of 123,000 seats on its flights. Last month, its total filled seats were 121,000.
capacity utilization = (121000 / 123000) × 100 = 98.37%

Technology Example

A software platform can handle 3,400 concurrent users. Last month, its peak usage was 330 concurrent users.
capacity utilization = (330 / 3400) × 100 = 9.71%
Overview: Capacity Utilization
The percentage of capacity that is actually used.
Depending on the analysis, the calculation of capacity utilization can be based on either effective capacity or design capacity.
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