Voltage drop is the voltage lost along a conductor because the conductor has resistance. Some drop is unavoidable. Too much, and motors run hot, LED drivers flicker, and sensitive equipment misbehaves at the far end of the run.
What the codes say
NEC 210.19(A), Informational Note 4, recommends no more than 3 % on a branch circuit and 5 % for feeder and branch together. For feeders, NEC 215.2(A) carries a matching Informational Note: 3 % on the feeder and 5 % for feeder and branch circuit together. CEC Rule 8-102 sets the same 3 % and 5 % from the service to the point of use. They are recommendations in the NEC and a rule in the CEC, and either way they are what an inspector expects.
How this tool works
It uses the DC resistance of each standard conductor size at 75 °C, calculates the drop for your current and length, and reports the first size that keeps the drop inside your limit. Single-phase and DC use the round-trip factor of 2; three-phase uses the square root of 3. The status line also tells you what one size smaller would give, so you can see the margin.
What it does not do
It does not check ampacity, short-circuit withstand, conduit fill or AC reactance. Above 250 kcmil in steel conduit, reactance matters and you should use AC impedance values. Size the conductor for every requirement, then take the largest.
