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We present a simple analytical method for capacity evaluation of IEEE 802.16e Mobile WiMAX networks. Various overheads that impact the capacity are explained and methods to reduce these overheads are also presented. The advantage of a simple model is that the effect of each decision and sensitivity to various parameters can be seen easily. We illustrate the model by estimating the capacity for three sample applications—Mobile TV, VoIP, and data. The analysis process helps explain various features of IEEE 802.16e Mobile WiMAX. It is shown that proper use of overhead reducing mechanisms and proper scheduling can make an order of magnitude difference in performance. This capacity evaluation method can also be used for validation of simulation models.