📘 Introduction

Ever wondered how Agile teams deliver consistently, sprint after sprint?

The secret lies in Capacity Planning - a crucial practice that ensures teams don’t overcommit or underdeliver. Whether you're a Scrum Master, Product Owner, or Project Manager, understanding capacity planning in Agile is key to maintaining a sustainable and predictable delivery flow.

In this guide, we’ll break down:

• What capacity planning really means

• Top methodologies you can apply

• Tools, formulas, and tips to make it work for your team

👉 Want to dive deeper into real-time team planning? Join ourScrum Master Interview Preparation Bootcamp for scenario-based training.

📖 What Is Capacity Planning?

Capacity Planning is the process of determining the available bandwidth or workload limit of your team for a given time period - usually a sprint.

In simpler terms, it helps answer:

“How much work can we realistically deliver this sprint, based on our team’s availability?”

💡 Why Is Capacity Planning Important?

✔️ Prevents burnout and overcommitment
✔️ Aligns business expectations with team reality
✔️ Improves sprint predictability and delivery rates
✔️ Enables proactive risk and dependency management
✔️ Helps in identifying resource constraints early

🔍 When Is Capacity Planning Done?

Usually done before Sprint Planning, during the Sprint Planning Prep phase or as part of backlog grooming. It gives the team clarity on:

• Who’s available

• For how many hours or days

• And how much velocity can be sustained

📊 Key Inputs for Capacity Planning

1. Team Members' Availability

• Consider holidays, leaves, part-time resources, etc.

2. Work Hours Per Day

• Typically 6–7 hours/day of effective effort

3. Sprint Duration

• Usually 2 weeks = 10 working days

4. Focus Factor

• A buffer percentage to account for meetings/disruptions (~0.6–0.8)

🧮 Capacity Planning Formula

For a Team Member:

ini

Capacity = (Working Days) × (Daily Hours) × (Focus Factor)