Some embodiments of the present invention provide a system that accurately and reliably updates a full charge capacity of a battery. During operation, the system charges the battery from an initial state to a rest point prior to reaching a fully charged state. The system then interrupts the charging process to allow the battery to relax to a resting voltage. Next, the system measures the resting voltage. The system then resumes the charging process toward the fully charged state. The system subsequently estimates the capacity of the battery based on the measured resting voltage and one or more other parameters.