I have 16GB Ipad and its capacity is only 13.8GB?

The rest of the space is taken by the operating system and pre-installed apps.

ErinKate_ wrote:

I have 16GB Ipad and its capacity is only 13.8GB?

Correct.

Buy a 4 gig flash drive and you'll find that the actual storage is like 3.7 gig. that's part of the issue, the way computer memory is measured and rounding (it's the same with everything)

And then like the other said, the operating system of the ipad takes up more space. I think my 32 gig Touch really has 27 gig and change in free space

You can see for yourself what it is used for: connect tp itunes, see the "band" at the bottom, place the mouse pointer on each of the colors.