What capacity is
Capacity is Everview's estimate of how many story points your team can realistically complete in an iteration. It starts from nominal capacity — the team's theoretical maximum contribution — then subtracts unavailable time (PTO, holidays, and other planned absences) to arrive at effective capacity, the number used for planning and for the Say-Do Ratio.
How to read it
On the sprint summary band, the capacity bar shows this as two segments: a solid segment for effective (available) capacity and a dashed segment for unavailable capacity. Hovering the capacity figure shows a tooltip with the effective-points estimate; hovering the availability figure shows the percentage of available hours over nominal hours for all members in the iteration.
What to do about it
If a sprint is overloaded, check availability before cutting scope — a low effective capacity is often explained by planned PTO or holidays rather than a genuine estimation problem. Compare planned points against effective, not nominal, capacity: planning against nominal capacity is a common cause of an Overdrive Momentum state.