# How to Calculate Effective Capacity and Efficiency

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Effective capacity rate refers to the amount of product that can be theoretically produced during a period of time, while actual capacity is the amount of product that is produced during the same period of time. For instance, while a television factory may have an effective capacity of 60 television sets per hour, its actual capacity may be only 40 television sets per hour. Efficiency, meanwhile, is a ratio that compares the effective capacity to the actual capacity. Given effective capacity and efficiency, you can calculate actual capacity.

Calculate effective capacity by dividing actual capacity by efficiency. Given a factory with an actual capacity of 40 television sets per hour and an efficiency rating of 66 percent, for instance, divide 40 by .66 to obtain an effective capacity of 60.

Divide actual capacity by effective capacity to obtain efficiency. Given a factory with an actual capacity of 50 television sets per hour and an effective capacity of 60 television sets per hour, for example, divide 50 by 60 to obtain 5/6 or an 83 percent efficiency.

Multiply effective capacity by efficiency to arrive at actual capacity rate. Given an effective capacity of 60 and an efficiency of 66 percent, for instance, multiply 60 by .66 to obtain an actual capacity rate of 40 television sets per hour.