Board Thread:Naruto Discussions/@comment-32617252-20170730054909/@comment-6769189-20170806220048

Chakra levels determine potential. Naruto had high potential in the beginning of the series but his lack of skill made all his chakra worthless, as shown with his sad Clone Jutsu.

Chakra level also determines how high level jutsu can be used and how potent it is.

Power, especially in Naruto is more about how effectively one uses their tools and abilities rather than their raw chalra level.