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Capacity Planning: How Much the Team Can Deliver

capacity-planning estimates planning

Average velocity tells you how much the team delivered in the past. Capacity planning tells you how much they’ll deliver in the next sprint. That difference is crucial for realistic planning.

Velocity vs. Capacity

Velocity: historical average of points delivered (e.g., 25 points/sprint) Capacity: points the team can deliver in the next sprint, factoring in absences

If 2 out of 6 devs are on vacation, capacity isn’t 25 — it’s ~17.

Calculating Capacity

Step 1: Determine Availability

MemberDays in SprintAbsencesBusiness Days
Ana10-10
Bruno102-day holiday8
Carlos103 days vacation7
Diana10-10
Eduardo105 days vacation5
Fernanda101 day appointment9

Total: 49 business days out of 60 available = 81.7% capacity

Step 2: Apply to Velocity

Average velocity: 25 points Adjusted capacity: 25 × 0.817 = ~20 points

Step 3: Round Down

Better to err on the conservative side: plan for 19 points.

Adjustment Factors

New Team Members

Each new member reduces capacity by 10-15% in their first sprint (onboarding and mentoring time).

Context Switching

Teams working across multiple products lose 10-20% capacity per context switch.

Corporate Events

Company-wide meetings, mandatory training, team building — all of that reduces capacity.

Non-Development Capacity

  • Code review: ~15% of time
  • Alignment meetings: ~10% of time
  • Refinement: ~5% of time
  • Refactoring: ~10% of time

Real capacity for features: ~60% of total time.

Planning Poker with Capacity

When planning a sprint with Planning Poker:

  1. Calculate adjusted capacity (e.g., 19 points)
  2. PO presents items in priority order
  3. Team estimates each item
  4. Stop when you reach capacity
  5. Remaining items go back to the backlog

Never plan above your calculated capacity. “If we have spare time, we’ll take more” is a much healthier mindset than “let’s squeeze in a bit more.”

Capacity by Work Type

A healthy sprint distributes capacity like this:

Type% of CapacityPoints (out of 20)
New features50-60%10-12
Bugs10-15%2-3
Refactoring/Technical debt15-20%3-4
Refinement and meetings10%~2

Tools

Capacity Spreadsheet

Create a simple spreadsheet where the Scrum Master calculates capacity each sprint:

  • Team member list
  • Business days in sprint
  • Known absences
  • Automatic calculation of available points

Velocity Range

Instead of a single number, use a range based on recent sprints:

  • Worst case (minimum of last 3 sprints): 20 points
  • Average case: 25 points
  • Best case (maximum): 30 points

Apply the capacity factor to each point in the range for an honest forecast.

When to Ignore Capacity

Hardening Sprint

The focus is on quality, not features. Feature capacity drops to zero.

Team Handling an Emergency

If a critical production bug consumes 50% of capacity, adjust the plan immediately.

Conclusion

Capacity planning is what separates realistic planning from wishful thinking. Velocity is the past; capacity is the future adjusted by reality. Calculate it, be conservative, and respect the number — your team and stakeholders will thank you.