A storage system and method for memory backlog hinting for variable capacity are provided. In one embodiment, a method for memory backlog hinting for variable capacity is provided that is performed in a storage system comprising a memory. The method comprises: sending information regarding a state of the memory to a host device; receiving an instruction from the host device to alter memory capacity in order to alter memory performance, wherein the instruction is based on the information regarding the state of the memory sent to the host device; and altering memory capacity in order to alter memory performance in response to receiving the instruction from the host device. Other embodiments are provided.