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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
Type
Definition
The percentage of capacity that is actually used.
Notes
Depending on the analysis, the calculation of capacity utilization can be based on either effective capacity or design capacity.
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