A system and method for capacity analysis in communication networks, particularly for on the move ad hoc wireless packet-switched networks, as well as wide variety of other multimedia networks is disclosed. The invention seeks to use the same two attributes per link (link capacity and link utilization) as known circuit-switched based analysis tools while incorporating useful aspects of various statistical analyses, such as a Queuing Theory based analysis, among others. In one embodiment, the invention introduces four tests to be implemented per each link, with results of these four tests being used to color code link congestion states to generate the reports for a planner. These four tests may generate an improved analysis of the network utilizing the same number of variables used in simple conventional circuit switched based analysis.