Estimation of the Embedding capacity is an important problem specifically in reversible multi-pass watermarking and is required for analysis before any image can be watermarked. In this paper, we propose an efficient method for estimating the embedding capacity of a given cover image under multi-pass embedding, without actually embedding the watermark. We demonstrate this for a class of reversible watermarking schemes which operate on a disjoint group of pixels, specifically for pixel pairs. The proposed algorithm iteratively updates the co-occurrence matrix at every stage, to estimate the multi-pass embedding capacity, and is much more efficient vis-a-vis actual watermarking. We also suggest an extremely efficient, pre-computable tree based implementation which is conceptually similar to the co-occurrence based method, but provides the estimates in a single iteration, requiring a complexity akin to that of single pass capacity estimation. We also provide bounds on the embedding capacity. We finally show how our method can be easily used on a number of watermarking algorithms and specifically evaluate the performance of our algorithms on the benchmark watermarking schemes of Tian [11] and Coltuc [6].