Capacity Utilization Calculator

Capacity Utilization Calculator calculator can be used to determine the percentage of capacity that has been used over a certain period of time.

Input Parameters

Calculation Results

Calculation Formula

Capacity Utilization (%) = (Actual Output / Potential Output) * 100

Where:
Actual Output: The total number of units produced during a specific period.
Potential Output: The maximum number of units that could have been produced during the same period.

Capacity Utilization Calculator Calculator Usage Guide

Learn how to use the Capacity Utilization Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the Actual Output in the first input field. This is the total number of units produced during a specific period.
  2. Enter the Potential Output in the second input field. This is the maximum number of units that could have been produced during the same period.
  3. Click the Calculate button to compute the capacity utilization percentage.
  4. The result will be displayed in the Capacity Utilization (%) field.

Understanding Capacity Utilization

Capacity Utilization is a key performance indicator that measures how effectively a company is using its resources. It is calculated by dividing the actual output by the potential output and multiplying by 100 to get a percentage.

A capacity utilization rate of 100% indicates that the company is using its resources to their full potential, while a lower percentage suggests underutilization of resources.

Example

If a factory has a potential output of 1,000 units per month and produces 800 units in a month, the capacity utilization rate would be:

Capacity Utilization = (800 / 1,000) * 100 = 80%