The paper presents development of the new Polish method for performing capacity analysis of basic segments of dual carriageway roads (motorways and expressways). The method is based on field traffic surveys conducted at 30 motorway and expressway sites (class A and S roads) in Poland. Traffic flows, composition and travel times were observed in 15-min intervals at each site using ANPR filming method. These data were used to calibrate a family of traffic speed-flow relationships for different roads, based on Van Aerde model. Free flow speed of traffic and road class are the basic parameters defining the speed-flow relationship and the value of capacity per lane in pcu/h. Traffic density was adopted as the measure of effectiveness for defining the level of service. The paper describes derivation of formulae for estimation of free flow speed for different types of roads as well as determination of equivalent factors for converting vehicles to passenger car units. The method allows us to determine capacity and the level of service based on existing or forecasted traffic flow.