Enter the maximum demand during any 15 minute period (kW) and the electricity rate ($/kWh) into the Calculator. The calculator will evaluate the Demand Charge.

## Demand Charge Formula

DC = MD15 * R

Variables:

- DC is the Demand Charge ($/hr)
- MD15 is the maximum demand during any 15 minute period (kW)
- R is the electricity rate ($/kWh)

To calculate Demand Charge, multiply the maximum demand during any 15 minute period by the electricity rate.

## How to Calculate Demand Charge?

The following steps outline how to calculate the Demand Charge.

- First, determine the maximum demand during any 15 minute period (kW).
- Next, determine the electricity rate ($/kWh).
- Next, gather the formula from above = DC = MD15 * R.
- Finally, calculate the Demand Charge.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

maximum demand during any 15 minute period (kW) = 300

electricity rate ($/kWh) = 4.25