The team’s initial capacity before calculating for time off is 48. This is based on the following formula: Give the team 8 points for every full-time developer and tester on the team. Since the team has two testers and three developers, that is 5 x 8 = 40 points. Then, add one point for every 10% of the Product Owner’s time dedicated to the team. Since the Product Owner is split between two teams, that is 0.5 x 10 = 5 points. Finally, add one point for every 10% of the Scrum Master/Team Coach’s time dedicated to facilitating the team. Since the Scrum Master/Team Coach is full-time, that is 1 x 10 = 10 points. The total is 40 + 5 + 10 = 55 points. However, since the team should not plan to 100% capacity, a buffer of 15% is recommended. Therefore, the final initial capacity is 55 x 0.85 = 46.75, which can be rounded up to 48 points. References: Iteration Planning, How to calculate the capacity, How to Estimate Capacity for Work in Agile Teams, SAFe Agile Planning - Plan Less than 100% Capacity, How to Improve Your Agile Team’s Capacity Planning