Methods and systems for a networked storage system are provided. One method includes categorizing by a processor performance data associated with a resource used in a networked storage environment for reading and writing data at a storage device based on a workload mix, where the workload mix is determined by a service time in which the resource processes the workload mix, a parameter indicating variability of the service time and a utilization bin index value indicating resource utilization at a given time; and determining by the processor available performance capacity of the resource using the categorized performance data, where the available performance capacity is based on optimum utilization of the resource and utilization of the resource.