A system for tracking the capacity of a battery in a portable electronic device is described. While the portable electronic device remains plugged in to a power adapter, the system estimates the capacity of the battery by performing the following operations. The system measures a first open-circuit voltage for the battery while the battery rests at a first state of charge. Next, the system causes the battery to transition to a second state of charge. While the battery transitions to the second state of charge, the system integrates a current through the battery to determine a net change in charge for the battery. Next, the system measures a second open-circuit voltage for the battery while the battery rests at the second state of charge. Finally, the system estimates a capacity for the battery based on the first open-circuit voltage, the second open-circuit voltage and the net change in charge. This capacity measurement is repeated and the multiple results are fit to a line. The slope of fitted line is then used to estimate how the true battery capacity has faded since last measured using traditional methods that require the battery to be rested at a low state of charge.