Capacity Utilization Calculator
The capacity utilization calculator helps you calculate the ratio between your current output and the maximum output (Potential output).
To determine capacity utilization, enter the current output (number of units produced) and the maximum output (potential number of units your factory, setup, or unit can generate).
The capacity utilization rate of an organization shows how much of its potential output is being realized. Calculating a company’s or country’s capacity utilization rate is a way to figure out what it can do.
The formula for capacity utilization is:
Capacity utilization = (Actual Output / Potential Output ) x 100
You might also want to figure out the production capacity or calculate the ROAS.
References
- Capacity Utilization Rate: Definition, Formula, Uses in Business. (2022, May 17). Investopedia. https://www.investopedia.com/terms/c/capacityutilizationrate.asp
- Capacity Utilization. (n.d.). Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/economics/capacity-utilization/
- Federal Reserve Board – Industrial Production and Capacity Utilization – G.17. (2023, March 28). Federal Reserve Board – Industrial Production and Capacity Utilization – G.17. https://www.federalreserve.gov/releases/g17/capnotes.htm
