Peak Demand CalculatorFormula

## How to Calculate Peak Demand

Peak demand is the maximum power draw at any point, measured in kilowatts (kW).

### Formula

**Peak Demand (kW) = Connected Load * Demand Factor**

**Monthly Demand Charge = Peak kW * Rate per kW**

Demand factor accounts for the fact that not all equipment runs simultaneously. Typical factors are 60-80% for commercial buildings.

Esempio Risolto

A building with 50 kW total connected load, 70% demand factor, and $12/kW demand charge.

  1. Peak demand: 50 * 0.70 = 35 kW
  2. Monthly charge: 35 * $12 = $420
  3. Annual charge: $420 * 12 = $5,040