# Load Factor Formula and How to Calculate it

Load factor is defined as the ratio between average load and maximum demand. In this post, you’ll learn the formula of load factor with an example.

*Mathematically, Load factor = Average Load/Maximum Demand*

We can also define load factor as:

**Load factor = Units generated in time / (Maximum demand * time)**

### Example of Load Factor calculation

Example # 1: The average demand at a power station is 5000 kW. Whereas the maximum demand is 8 MW. Find the load factor.

Load factor: 5000 kW/8000 kW = 0.625