A method for monitoring the performance of a catalytic converter (34) computes the oxygen storage capacity and desorption capacity of a catalyst within the catalytic converter (34). An engine control unit (10) receives mass flow rate information of air from a mass air flow rate sensor (12) and an injector driver (24), and receives electrical signals from an upstream exhaust gas sensor (28) and a downstream exhaust gas sensor (30). The engine control unit (10) calculates normalized air fuel ratios for the exhaust gas entering and leaving the catalytic converter (34) and performs numerical integration to determine the oxygen storage capacity and oxygen desorption capacity of the catalyst in the catalytic converter (34). The calculated oxygen storage and desorption capacities of the catalyst are compared with threshold values to determine the performance of the catalytic converter (34).