Use Annual Capacity in Magnifi to estimate how much income your Direct employees can generate over a full year.
Annual Capacity combines each employee’s available hours (from Labour Drivers) with their Productivity %, Recovery %, Sell Rate, and Overtime % to calculate total Capacity ($).
It provides an annual capacity projection based on either:
Constant inputs (simple method): where Productivity %, Sell Rate, and Recovery % remain fixed for the year, or
Monthly inputs (optional): where these values vary by month if Monthly Capacity is used.
This projection helps you assess whether your team’s total capacity is sufficient to meet your income targets.
Use this guide when you want to:
• Calculate each Direct employee’s annual capacity using Productivity %, Recovery %, and Sell Rate.
– Productivity % and Sell Rate are entered at the employee level.
– Recovery % and Overtime % are entered at the organisation or divisional level.
• Compare Projected Capacity ($) with Projected Income ($) to confirm targets are achievable.
• Check that each employee’s targets align with overall business goals.
• Review or report capacity by Division (if divisions exist).
Magnifi uses a consistent formula to calculate each employee’s annual Capacity ($):
Available Hours = Standard working hours − Leave hours
Total Hours = Available Hours × (1 + Overtime %)
Billable Hours = Total Hours × Productivity % × Recovery %
Capacity ($) = Billable Hours × Sell Rate
Example:
If an employee works 1,600 hours per year, has 7.69 % leave, 10 % overtime, 80 % productivity, 90 % recovery, and a $150 sell rate:
Capacity = (1,600 × (1 – 0.0769) × 1.10 × 0.80 × 0.90) × 150 = $171,000
Tip: Overtime % reflects paid overtime only.
If employees often work unpaid extra hours, represent that through a higher Productivity % instead.
For more detail, see Capacity – Core Concepts and Calculations.
Go to Capacity → Annual Capacity.
The grid lists Direct employees only (contractors also appear if classified as Direct).
Each row flows left-to-right, showing how capacity is calculated — from Available Hours through to Capacity ($).
You can update Productivity % or Sell Rate directly in the grid.
Recovery % and Overtime % appear at the top because they apply at the organisation or divisional level.
This option appears only if you already have data in Monthly Capacity.
Choose Constant Inputs to calculate annual capacity using fixed assumptions for the year:
• Productivity % and Sell Rate remain constant and are editable.
• Leave is deducted automatically, assuming all employees take their full entitlement.
Choose Monthly Inputs to base your calculation on Monthly Capacity data:
• Productivity % and Sell Rate can vary month by month, and Annual Capacity will display the derived average for the year (not editable).
• Leave deductions are based on monthly leave data entered under Monthly Capacity.
For more detail, see Capacity – Annual v Monthly Explained.
Available Hours are sourced from Profit → Labour Drivers (hours per week × weeks per year), less leave.
Hover over Available Hours to see how they’re calculated and what leave deduction has been applied.
If using Constant Inputs:
• Default leave comes from Capacity → Capacity Defaults.
• Magnifi assumes employees take their full entitlement for the year.
• To change leave for a specific employee, expand their row and edit.
If using Monthly Inputs, leave is updated under Monthly Capacity.
To adjust base hours, open Labour Drivers → Employees, edit the hours, and click Save — changes flow automatically to Annual Capacity.
If contractors or casual employees are classified as Direct, they appear in capacity calculations.
Enter hours/week based on expected paid hours for the year (for example, exclude weeks they won’t work over Christmas).
Casual and contract employees don’t have default leave because you only enter the hours they’re expected to work.
• However, if you want to allow for unpaid time off, expand their row and enter an Other Leave % — this becomes their leave deduction.
If using Monthly Capacity, you can record this leave under Monthly Capacity → Leave (select “Other” as the leave type).
If using Constant Inputs:
• Default values flow from Capacity Defaults.
• Click directly into Productivity % or Sell Rate to edit.
• To copy a rate or percentage to all employees, use the down arrow in the column header.
• Overtime % and Recovery % are entered at the organisation/divisional level at the top of the page.
• The default Overtime % is entered under Labour Drivers → Gross Wages.
When you update Overtime % in Annual Capacity, Magnifi automatically updates it in Labour Drivers to stay in sync.
If using Monthly Inputs:
• Values are automatically calculated from Monthly Capacity and can’t be edited here.
• To update, switch to Constant Inputs, make the change and when you save, you will be prompted to choose the month the change should apply from — Magnifi will update Monthly Capacity accordingly.
In Annual Capacity, open the division and adjust percentages as needed.
Click Show Unallocated Employees to include any not yet assigned.
Use the down arrow next to the header to copy the same value down a division.
In the All Divisions view, each employee must total 100%.
Hover over the Divisional % to see how the allocation is split.
For bulk changes, go to Labour Drivers → Employees → Division Allocation.
The total at the bottom shows your organisation’s Projected Capacity ($) across all Direct employees.
This is compared with Projected Income ($), drawn from accounts marked as Capacity Accounts under Chart of Accounts.
Click the expand icon beside Projected Income to view or adjust which accounts are included.
Review the Capacity Surplus or Shortfall to check whether your income targets are achievable.
Click Export → Excel to download:
• Worksheet 1: Organisation-wide capacity (all Direct employees)
• Worksheet 2 (if divisions exist): Capacity by division, detailed by employee
If using Monthly Capacity, run monthly reports under Capacity → Monthly Capacity.
Why don’t all employees appear?
Only Direct employees (and contractors classified as Direct) are included in capacity calculations.
Can I edit cells here?
Yes — if Default (editable) is set in Capacity Defaults, you can edit Productivity % or Sell Rate directly.
If cells are locked, it may be because:
• The rate is set as Fixed in Capacity Defaults, or
• You’re viewing Monthly Inputs, where values are derived automatically.
Why can’t I change Available Hours here?
Available Hours come from Labour Drivers → Employees. Edit them there and updates appear automatically.
How do Divisional Sell Rates work?
By default, Sell Rates are entered at the All Divisions level and apply to every division where the employee appears.
If you want different rates per division, go to Capacity → Capacity Defaults and tick Divisional Employee Rates.
How do I know if I have enough capacity?
Check the totals at the bottom.
If Projected Capacity is lower than Projected Income, review hours, Productivity %, Recovery %, or Sell Rates — or consider adjusting staffing levels.
Aim for a small buffer between projected capacity and projected income.