When applying capacitors to distribution line, an effort must be made to determine the economic benefits resulting from the installation of a capacitor. There have been many papers and articles published on the economics of capacitors. Most of these are special cases, or have so many qualifications that they are not much use for other cases unless very careful attention is given to minute details. A general economic analysis on a distribution line is very complicated problem. Consequently, a diagram solution is illustrated for determining the economic condenser and applying resonably well for the distribution line with any load division.