How to calculate Capacity utilization
The Capacity utilization formula, with plain worked examples you can check yourself.
Capacity utilization = A ÷ C × 100
The result is a percentage (%).
Worked examples
A = 540 · C = 900Capacity utilization = 60%
A = 300 · C = 400Capacity utilization = 75%
A = 600 · C = 800Capacity utilization = 75%
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Multiply by 100 to show the answer as a percentage.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Operations.
Related terms
BottleneckOutsourcingEconomies of scaleLean manufacturingCapacity planningStandard operating procedure
Practice Capacity utilization with real numbers
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