Ok, so first things first. The PSU Wattage is a perfectly fine way at looking at a PSU to determine if it may meet your requirements. There are some gotchas to take into account.
Gotcha
#1 : Capacitor aging
Capacitors will age, it's just the way things go. The exact percentage will depend on the overall build quality of the PSU, the components used and your usage and load patterns. a good "rule of thumb" is to factor in a 10% per year reduction in output of the PSU if it has been used 24/7 at around 50% usage. This basically means that your 1000W monster PSU will at peak output push around 900W around the end of year 1 and 810W around the end of year two WORST CASE. Capacitor aging is unfortunately NOT LINEAR and could be as low as 1% per year. Case in point is my Coolermaster 750W PSU that is about 3-4 years old and will only push around 700W currently which is well above the expected ~500W if 10% year on year aging is taken into account.
Gotcha
#2 : Specifications (aka why a cheap 1000W PSU wont work, but a good quality 550W will work fine)
Technically, the power supply in most PCs is described as a constant voltage switching power supply unit (PSU), which is defined as follows Constant voltage means the power supply puts out the same voltage to the computer’s internal components, no matter the voltage of AC current running it or the capacity (wattage) of the power supply. Switching refers to the design and power regulation technique that most suppliers use. Compared to other types of power supplies, this design provides an efficient and inexpensive power source and generates a minimum amount of heat. It also maintains a small size and
low price.
The PSU normally supplies +3.3 V, +5 V, and +12 V to the system. These voltages are often called rails, referring to the fact that although there are multiple wires carrying a specific voltage, they are normally tied to a single rail (or tap) in the PSU. Multiple wires are used because, if all of the current were carried over a single wire, the wire and the terminals, connectors, and even the traces on the circuit boards would all have to be extremely large and thick to handle the load. Instead, it is cheaper and more efficient to spread the load out among multiple smaller and thinner wires.
The digital electronic components and circuits in the system (motherboard, adapter cards, and disk drive logic boards) typically use the +3.3 V or +5 V power, and the motors (disk drive motors and any fans) use the +12 V power. In addition, voltage regulators on the motherboard or in other components convert these standard voltages to others as necessary.
You can think of each rail as a separate power circuit, kind of like a power supply within the power supply. Normally each rail is rated for a specified maximum amount of current in amperes. Because the extreme amount of 12 V current required by newer CPU voltage regulators and high-end video cards can exceed the output of common 12 V rails, some power supply designs use multiple +12 V rails. This means that essentially they have two or more separate 12 V circuits internally, with some wires tapping off of one circuit and others tapping off of another. Unfortunately, this can lead to power problems, especially if you fail to balance the loads on both rails or to ensure you don’t exceed the load capacity on one or the other. In other words, it is far better to have a single 12 V rail that can supply 40 amps than two 12 V rails supplying 20 amps each because with the single rail you don’t have to worry which connectors derive power from which rail and then try to ensure that you don’t overload one or the other.
Whereas the +3.3 V, +5 V, and +12 V rails are technically independent inside the power supply, many cheaper designs have them sharing some circuitry, making them less independent than they should be. This manifests itself in voltage regulation problems in which a significant load on one rail causes a voltage drop on the others. Components such as processors and video cards can vary their power consumption greatly by their activity. Transitioning from sitting at the Windows desktop to loading a 3D game can cause both the processor and video card to more than double the draw on the +12 V rail. On some cheaper power supplies, this can cause the voltages on the other rails to fall out of spec (drop greater than 5%), making the system crash. Better-designed power supplies feature truly independent rails with tighter regulation in the 1% to 3% range.
The power supply must deliver a good, steady supply of DC power so the system can operate properly. Devices that run on voltages other than these directly must then be indirectly powered through on-board voltage regulators, which take the 5 V or 12 V from the power supply and convert that to the lower voltages required by various components. For example, older DDR (double data rate) dual inline memory modules (DIMMs) and Rambus inline memory modules (RIMMs) require 2.5 V, whereas DDR2 and DDR3 DIMMs require 1.8 V and 1.5 V, legacy AGP 4x/8x cards require 1.5 V, and current PCI Express cards use only 0.8 V differential signaling—all of which are supplied by simple on-board regulators. Processors also require a variety of voltages (as low as 1.3 V or less) that are supplied by a sophisticated voltage regulator module (VRM) that is either built into or plugged into the motherboard. You’ll commonly find three or more different voltage regulator circuits on a modern motherboard.
If you look at a specification sheet for a typical PC power supply, you can see that the supply generates not only +3.3 V, +5 V, and +12 V, but also –12 V and possibly –5 V. Although –12 V and (possibly) –5 V are supplied to the motherboard via the power supply connectors, the motherboard normally uses only the +3.3 V, +5 V, and +12 V. If present, the –5 V is simply routed to the ISA bus on pin B5 so any ISA cards can use it, even though very few ever have. However, as an example, the analog data separator circuits found in older floppy controllers did use –5 V. The motherboard logic typically doesn’t use –12 V either; however, it might be used in some board designs for serial port or local area network (LAN) circuits.
The positive voltages seemingly power everything in the system (logic and motors), so what are the negative voltages used for? The answer is, not much! In fact, –5 V was removed from the ATX12V 1.3 and later specifications. The only reason it remained in most power supply designs for many years is that –5 V was required on the ISA bus for full backward compatibility. Because modern PCs no longer include ISA slots, the –5 V signal was deemed as no longer necessary. However, if you are installing a new power supply in a system with an older motherboard that incorporates ISA bus slots, you want a supply that does include the –5 V signal.
Note: The load placed on the –12 V output by an integrated LAN adapter is small. For example, the integrated 10/100 Ethernet adapter in the Intel D815EEAL motherboard uses only 10 mA of +12 V and 10 mA of –12 V (0.01 amps each) to operate.
Although older serial port circuits used +/–12 V outputs, today most run only on +3.3 V or +5 V.
The main function of the +12 V power is to run disk drive motors as well as the higher-output processor voltage regulators in some of the newer boards. Usually, a large amount of +12 V current is available from the power supply, especially in those designed for systems with a large number of drive bays (such as in a tower configuration). Besides disk drive motors and newer CPU voltage regulators, the +12 V supply is used by any cooling fans in the system—which, of course, should always be running. A single cooling fan can draw between 100 mA and 250 mA (0.1–0.25 amps); however, most newer fans use the lower 100 mA figure. Note that although most fans in desktop systems run on +12 V, portable systems can use fans that run on +5 V or even +3.3 V.
Systems with modern form factors based on the ATX or BTX standards include another special signal. This feature, called PS_ON, can turn the power supply (and thus the system) on or off via software. It is sometimes known as the soft-power feature. PS_ON is most evident when you use it with an operating system (OS) such as Windows that supports the Advanced Power Management (APM) or Advanced Configuration and Power Interface (ACPI) specification. When you shut down a PC from the Start menu, Windows automatically turns off the computer after it completes the OS shutdown sequence. A system without this feature only displays a message that it’s safe or ready for you to shut down the computer manually.
TLDR version : look at the sticker on the side of your PSU and take each specified rail (12V, 5V, 3V). Then for each rail multiply the Ampere rating with the Volt rating to get the electric power (Watts) for the rail. Do this for all specified rails, then add up the numbers. This should be equal to or less than your PSUs overall Wattage rating (but will never be

). Also, good quality PSUs will have MULTIPLE & SEPERATE 12V and 5V rails.
Example: Coolermaster GX750 - CM Storm Edition
AC INPUT : 100-240V~ 12-6A 60-50Hz
DC OUTPUT :
+3.3V @ 22A rated at 120W (72.6 W actual)(NOTE that the 3.3V and 5V share the SAME RAIL)
+5V @ 22A rated at 120W (110 W actual) (shared with the 3.3V rail)
Actual @ maximum : 72.6W +110W = 182.6 W which is 60W more than the rail can handle
12V @ 62A rated at 744W (actual is 744W)
Now add 744W + 182.6W = 926.6W which is 176.6 W more than what the PSU is rated at.
So to then work out EXACTLY what is needed, take the MAX wattage requirement of each component : CPU + Memory + CD-ROM/DVD-ROM/Blu-Ray + HDD + fans, split those into their rail requirements, then see if you're maxing out your PSU.