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.

  1. First, determine the maximum demand during any 15 minute period (kW). 
  2. Next, determine the electricity rate ($/kWh). 
  3. Next, gather the formula from above = DC = MD15 * R.
  4. Finally, calculate the Demand Charge.
  5. 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