diff --git a/docs/API/configuration-guidelines.md b/docs/API/configuration-guidelines.md
new file mode 100644
index 000000000..f0566d7d0
--- /dev/null
+++ b/docs/API/configuration-guidelines.md
@@ -0,0 +1,110 @@
+# Configuration Guidelines
+
+## Receiver Buffer Size
+
+The receiver buffer can be configured with the [`SRTO_RCVBUF`](./API-socket-options.md#SRTO_RCVBUF) socket option.
+Buffer size in bytes is expected to be passed in the `optval` argument of the `srt_setsockopt(..)` function.
+However, internally the value will be converted into the number of packets stored in the receiver buffer.
+
+The allowed value of `SRTO_RCVBUF` is also limited by the value of the flow control window size [`SRTO_FC`]((./API-socket-options.md#SRTO_FC) socket option.
+See issue [#700](https://github.com/Haivision/srt/issues/700).
+
+The default flow control window size is 25600 packets. It is approximately:
+
+- **270 Mbits** of payload in the default live streaming configuration with an SRT payload size of **1316 bytes**;
+- **300 Mbits** of payload in the default file transfer configuration with an SRT payload size of **1456 bytes**.
+
+The default receiver buffer size is 8192 packets. It is approximately: 
+- **86 Mbits** of payload with the effective SRT payload size of **1316 bytes**.
+
+### Setting Receiver Buffer Size
+
+As already mentioned, the maximum allowed size of the receiver buffer is limited by the value of `SRTO_FC`.
+When the `SRTO_RCVBUF` option value is set using the `srt_setsockopt(..)` function,
+the provided size in bytes is internally converted to the corresponding size in packets
+using the configured value of the `SRTO_MSS` option to estimate the maximum possible payload of a packet.
+
+The following function returns the buffer size in packets:
+
+```c++
+int getRbufSizePkts(int SRTO_RCVBUF, int SRTO_MSS, int SRTO_FC)
+{
+    // UDP header size is assumed to be 28 bytes
+    // 20 bytes IPv4 + 8 bytes of UDP
+    const int UDPHDR_SIZE = 28;
+    const in pkts = (rbuf_size / (SRTO_MSS - UDPHDR_SIZE));
+
+    return min(pkts, SRTO_FC);
+}
+```
+
+If the value of `SRTO_RCVBUF` in packets exceeds `SRTO_FC`, then it is silently set to the value in bytes corresponding to `SRTO_FC`.
+Therefore, to set higher values of `SRTO_RCVBUF` the value of `SRTO_FC` must be increased first.
+
+### Calculating Target Size in Packets
+
+The minimum size of the receiver buffer in packets can be calculated as follows:
+
+`pktsRBufSize = bps / 8 × (RTTsec + latency_sec) / bytePayloadSize`
+
+where
+
+- `bps` is the payload bitrate of the stream in bits per second;
+- `RTTsec` is the RTT of the network connection in seconds;
+
+- `bytePayloadSize` is the expected size of the payload of the SRT data packet.
+
+If the whole remainder of the MTU is expected to be used, payload size is calculated as follows: 
+
+`bytePayloadSize = MSS - 44`
+
+where
+
+- 44 is the size in bytes of an **IPv4** header: 
+   - 20 bytes **IPv4** 
+   - 8 bytes of UDP
+   - 16 bytes of SRT packet header.
+
+- `MSS` is the Maximum Segment Size (aka MTU); see `SRTO_MSS`.
+
+### Calculating Target Size to Set
+
+To determine the value to pass in `srt_setsockopt(..)` with `SRTO_RCVBUF`
+the size in packets `pktsRBufSize` must be converted to the size in bytes
+assuming the internal conversion of the `srt_setsockopt(..)` function.
+
+The target size of the payload stored by the receiver buffer would be: 
+
+`SRTO_RCVBUF = pktsRBufSize × (SRTO_MSS - UDPHDR_SIZE)`  
+
+where
+
+- `UDPHDR_SIZE` = 28 (20 bytes IPv4, 8 bytes of UDP)
+- `SRTO_MSS` is the corresponding socket option value at the moment of setting `SRTO_RCVBUF`.
+
+
+### Summing Up
+
+
+```c++
+
+auto CalculateTargetRBufSize(int msRTT, int bpsRate, int bytesPayloadSize, int msLatency, int SRTO_MSS, int SRTO_FC)
+{
+    const int UDPHDR_SIZE = 28;
+    const int targetPayloadBytes = (msLatency + msRTT / 2) * bpsRate / 1000 / 8;
+    const int targetNumPackets   = targetPayloadBytes / bytesPayloadSize;
+    const int targetSizeValue    = targetNumPackets * (SRTO_MSS - UDPHDR_SIZE);
+    return {targetNumPackets, targetSizeValue};
+}
+
+// Configuring
+
+const auto [fc, rcvbuf] = CalculateTargetRBufSize(msRTT, bpsRate, bytesPayloadSize, SRTO_RCVLATENCY, SRTO_MSS, SRTO_FC);
+
+int optval = fc;
+int optlen = sizeof optval;
+srt_setsockopt(sock, 0, SRTO_FC, (void*) &optval, optlen);
+
+optval = rcvbuf;
+srt_setsockopt(sock, 0, SRTO_RCVBUF, (void*) &optval, optlen);
+```
diff --git a/docs/README.md b/docs/README.md
index 2d91117d7..2cf43db52 100644
--- a/docs/README.md
+++ b/docs/README.md
@@ -9,13 +9,14 @@
 
 ## SRT API Documents
 
-| Document Title                                      |            Folder             | File Name                                          | Description                                          |
-| :-------------------------------------------------- | :---------------------------- | :------------------------------------------------- | :--------------------------------------------------- |
-| [SRT API](API/API.md)                               |          [API](API/)          | [API.md](API/API.md)                               | Detailed description of the SRT C API.               |
-| [SRT API Functions](API/API-functions.md)           |          [API](API/)          | [API-functions.md](API/API-functions.md)           | Reference document for SRT API functions.            |
-| [SRT API Socket Options](API/API-socket-options.md) |          [API](API/)          | [API-socket-options.md](API/API-socket-options.md) | Instructions and list of socket options for SRT API. |
-| [SRT Statistics](API/statistics.md)                 |          [API](API/)          | [statistics.md](API/statistics.md)                 | How to use SRT socket and socket group statistics.   |
-| <img width=200px height=1px/>                       | <img width=100px height=1px/> | <img width=200px height=1px/>                      | <img width=500px height=1px/>                        |
+| Document Title                                         |            Folder             | File Name                                          | Description                                          |
+| :----------------------------------------------------- | :---------------------------- | :------------------------------------------------- | :--------------------------------------------------- |
+| [SRT API](API/API.md)                                  |          [API](API/)          | [API.md](API/API.md)                               | Detailed description of the SRT C API.               |
+| [SRT API Functions](API/API-functions.md)              |          [API](API/)          | [API-functions.md](API/API-functions.md)           | Reference document for SRT API functions.            |
+| [SRT API Socket Options](API/API-socket-options.md)    |          [API](API/)          | [API-socket-options.md](API/API-socket-options.md) | Instructions and list of socket options for SRT API. |
+| [SRT Statistics](API/statistics.md)                    |          [API](API/)          | [statistics.md](API/statistics.md)                 | How to use SRT socket and socket group statistics.   |
+| [Configuration Guidelines](API/configuration-guidelines.md) |     [API](API/)          | [configuration-guidelines.md](API/configuration-guidelines.md) | How to configure SRT buffers.            |
+| <img width=200px height=1px/>                          | <img width=100px height=1px/> | <img width=200px height=1px/>                      | <img width=500px height=1px/>                        |
 
 ## Build Instructions