A thermodynamic approach to estimating maximum potential intensity (MPI) of tropical cyclones is described and compared with observations and previous studies. The approach requires an atmospheric temperature sounding, SST, and surface pressure; includes the oceanic feedback of increasing moist entropy associated with falling surface pressure over a steady SST; and explicitly incorporates a cloudy eyewall and a clear eye. Energetically consistent, analytic solutions exist for all known atmospheric conditions. The method is straightforward to apply and is applicable to operational analyses and numerical model forecasts, including climate model simulations. The derived MPI is highly sensitive to the surface relative humidity under the eyewall, to the height of the warm core, and to transient changes of ocean surface temperature. The role of the ocean is to initially contribute to the establishment of the ambient environment suitable for cyclone development, then to provide the additional energy req... Abstract A thermodynamic approach to estimating maximum potential intensity (MPI) of tropical cyclones is described and compared with observations and previous studies. The approach requires an atmospheric temperature sounding, SST, and surface pressure; includes the oceanic feedback of increasing moist entropy associated with falling surface pressure over a steady SST; and explicitly incorporates a cloudy eyewall and a clear eye. Energetically consistent, analytic solutions exist for all known atmospheric conditions. The method is straightforward to apply and is applicable to operational analyses and numerical model forecasts, including climate model simulations. The derived MPI is highly sensitive to the surface relative humidity under the eyewall, to the height of the warm core, and to transient changes of ocean surface temperature. The role of the ocean is to initially contribute to the establishment of the ambient environment suitable for cyclone development, then to provide the additional energy req...