Capacity has always been a major concern in wireless networks. This letter studies the impact of mobility on the overall system capacity in wireless cellular networks. In this letter, we present a simple system model which we developed to capture the inherent relationships among system capacity, new call blocking probability, handoff dropping probability, call terminating probability, and bandwidth utilization rate. We investigate the complex relationship between mobility and capacity-related parameters. Through simulation, we demonstrate that mobility has a significant impact on capacity and is reversely proportional to the bandwidth reserved for handoff traffic.