This paper reviews different methodologies used for railroad capacity estimation and presents a user-friendly method to measure capacity. The objective of this paper is to use multivariate regression analysis to develop a continuous relation of the discrete parameters identified for capacity estimation. The algorithm developed in this paper can be used for managerial decision making regarding railroad capacity by various state agencies and state DOTs. This paper illustrates the relationship between the parameters and section capacities, which can be used to improve the throughput of the transportation system. The paper also illustrates the application of the model to estimate capacity of a statewide railroad network.