diff --git a/ksqldb-rest-app/src/main/java/io/confluent/ksql/rest/server/validation/RequestValidator.java b/ksqldb-rest-app/src/main/java/io/confluent/ksql/rest/server/validation/RequestValidator.java
index 5a026e55acd0..4bfa1a989b87 100644
--- a/ksqldb-rest-app/src/main/java/io/confluent/ksql/rest/server/validation/RequestValidator.java
+++ b/ksqldb-rest-app/src/main/java/io/confluent/ksql/rest/server/validation/RequestValidator.java
@@ -109,10 +109,10 @@ public int validate(
 
       numPersistentQueries +=
           validate(serviceContext, configured, sessionProperties, ctx, injector);
-    }
 
-    if (QueryCapacityUtil.exceedsPersistentQueryCapacity(ctx, ksqlConfig, numPersistentQueries)) {
-      QueryCapacityUtil.throwTooManyActivePersistentQueriesException(ctx, ksqlConfig, sql);
+      if (QueryCapacityUtil.exceedsPersistentQueryCapacity(ctx, ksqlConfig)) {
+        QueryCapacityUtil.throwTooManyActivePersistentQueriesException(ctx, ksqlConfig, sql);
+      }
     }
 
     return numPersistentQueries;
diff --git a/ksqldb-rest-app/src/main/java/io/confluent/ksql/rest/util/QueryCapacityUtil.java b/ksqldb-rest-app/src/main/java/io/confluent/ksql/rest/util/QueryCapacityUtil.java
index ae0056724364..2fbb85eaf1d7 100644
--- a/ksqldb-rest-app/src/main/java/io/confluent/ksql/rest/util/QueryCapacityUtil.java
+++ b/ksqldb-rest-app/src/main/java/io/confluent/ksql/rest/util/QueryCapacityUtil.java
@@ -25,11 +25,9 @@ private QueryCapacityUtil() {
 
   public static boolean exceedsPersistentQueryCapacity(
       final KsqlExecutionContext executionContext,
-      final KsqlConfig ksqlConfig,
-      final long additionalQueries
+      final KsqlConfig ksqlConfig
   ) {
-    final long newTotal = executionContext.getPersistentQueries().size() + additionalQueries;
-    return newTotal > getQueryLimit(ksqlConfig);
+    return executionContext.getPersistentQueries().size() > getQueryLimit(ksqlConfig);
   }
 
   public static void throwTooManyActivePersistentQueriesException(
diff --git a/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/server/resources/KsqlResourceTest.java b/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/server/resources/KsqlResourceTest.java
index 8fa75432c619..6fbb6ca9983f 100644
--- a/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/server/resources/KsqlResourceTest.java
+++ b/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/server/resources/KsqlResourceTest.java
@@ -586,6 +586,27 @@ public void shouldListTablesStatement() {
     assertThat(tablesList.getTables(), contains(sourceTable("TEST_TABLE")));
   }
 
+  @Test
+  public void shouldExecuteMaxNumberPersistentQueries() {
+    // Given:
+    final String sql = "CREATE STREAM S AS SELECT * FROM test_stream;";
+    givenKsqlConfigWith(ImmutableMap.of(
+        KsqlConfig.KSQL_ACTIVE_PERSISTENT_QUERY_LIMIT_CONFIG, "1"
+    ));
+    setUpKsqlResource();
+
+
+    // When:
+    makeSingleRequest(sql, CommandStatusEntity.class);
+
+    // Then:
+    verify(commandStore).enqueueCommand(
+        any(),
+        argThat(is(commandWithStatement(sql))),
+        any(Producer.class)
+    );
+  }
+
   @Test
   public void shouldFailForIncorrectCSASStatementResultType() {
     // When:
@@ -1491,7 +1512,8 @@ public void shouldFailIfReachedActivePersistentQueriesLimit() {
 
     givenMockEngine();
 
-    givenPersistentQueryCount(3);
+    // mock 3 queries already running + 1 new query to execute
+    givenPersistentQueryCount(4);
 
     // When:
     final KsqlErrorMessage result = makeFailingRequest(
@@ -1508,12 +1530,13 @@ public void shouldFailIfReachedActivePersistentQueriesLimit() {
   public void shouldFailAllCommandsIfWouldReachActivePersistentQueriesLimit() {
     // Given:
     givenKsqlConfigWith(
-        ImmutableMap.of(KsqlConfig.KSQL_ACTIVE_PERSISTENT_QUERY_LIMIT_CONFIG, 3));
+        ImmutableMap.of(KsqlConfig.KSQL_ACTIVE_PERSISTENT_QUERY_LIMIT_CONFIG, 1));
 
     final String ksqlString = "CREATE STREAM new_stream AS SELECT * FROM test_stream;"
         + "CREATE STREAM another_stream AS SELECT * FROM test_stream;";
     givenMockEngine();
 
+    // mock 2 new query to execute
     givenPersistentQueryCount(2);
 
     // When:
diff --git a/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/server/validation/RequestValidatorTest.java b/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/server/validation/RequestValidatorTest.java
index 71cfe642fef3..3ede452b6add 100644
--- a/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/server/validation/RequestValidatorTest.java
+++ b/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/server/validation/RequestValidatorTest.java
@@ -55,7 +55,10 @@
 import io.confluent.ksql.util.KsqlConfig;
 import io.confluent.ksql.util.KsqlException;
 import io.confluent.ksql.util.KsqlStatementException;
+import io.confluent.ksql.util.PersistentQueryMetadata;
 import io.confluent.ksql.util.Sandbox;
+
+import java.util.ArrayList;
 import java.util.List;
 import java.util.Map;
 import org.junit.Before;
@@ -197,6 +200,7 @@ public void shouldThrowIfNoValidatorAvailable() {
   public void shouldThrowIfTooManyPersistentQueries() {
     // Given:
     when(ksqlConfig.getInt(KsqlConfig.KSQL_ACTIVE_PERSISTENT_QUERY_LIMIT_CONFIG)).thenReturn(1);
+    givenPersistentQueryCount(2);
 
     final List<ParsedStatement> statements =
         givenParsed(
@@ -304,6 +308,13 @@ private void givenRequestValidator(
     );
   }
 
+  @SuppressWarnings("unchecked")
+  private void givenPersistentQueryCount(final int value) {
+    final List<PersistentQueryMetadata> queries = mock(List.class);
+    when(queries.size()).thenReturn(value);
+    when(ksqlEngine.getPersistentQueries()).thenReturn(queries);
+  }
+
   @Sandbox
   private interface SandboxEngine extends KsqlExecutionContext {
   }
diff --git a/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/util/QueryCapacityUtilTest.java b/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/util/QueryCapacityUtilTest.java
index 2b3fef733e92..99a802e52adb 100644
--- a/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/util/QueryCapacityUtilTest.java
+++ b/ksqldb-rest-app/src/test/java/io/confluent/ksql/rest/util/QueryCapacityUtilTest.java
@@ -47,18 +47,7 @@ public void shouldReportCapacityExceededIfOverLimit() {
     givenQueryLimit(2);
 
     // Then:
-    assertThat(QueryCapacityUtil.exceedsPersistentQueryCapacity(ksqlEngine, ksqlConfig, 0),
-        equalTo(true));
-  }
-
-  @Test
-  public void shouldReportCapacityExceededIfTooManyQueriesAdded() {
-    // Given:
-    givenActivePersistentQueries(2);
-    givenQueryLimit(4);
-
-    // Then:
-    assertThat(QueryCapacityUtil.exceedsPersistentQueryCapacity(ksqlEngine, ksqlConfig, 3),
+    assertThat(QueryCapacityUtil.exceedsPersistentQueryCapacity(ksqlEngine, ksqlConfig),
         equalTo(true));
   }
 
@@ -66,21 +55,10 @@ public void shouldReportCapacityExceededIfTooManyQueriesAdded() {
   public void shouldNotReportCapacityExceededIfReached() {
     // Given:
     givenActivePersistentQueries(2);
-    givenQueryLimit(4);
-
-    // Then:
-    assertThat(QueryCapacityUtil.exceedsPersistentQueryCapacity(ksqlEngine, ksqlConfig, 2),
-        equalTo(false));
-  }
-
-  @Test
-  public void shouldNotReportCapacityExceededIfNotReached() {
-    // Given:
-    givenActivePersistentQueries(2);
-    givenQueryLimit(4);
+    givenQueryLimit(2);
 
     // Then:
-    assertThat(QueryCapacityUtil.exceedsPersistentQueryCapacity(ksqlEngine, ksqlConfig, 1),
+    assertThat(QueryCapacityUtil.exceedsPersistentQueryCapacity(ksqlEngine, ksqlConfig),
         equalTo(false));
   }