This paper presents a novel theoretical method based on power analysis to obtain voltage reference values for an inverter-based compensator. This type of compensator, which is installed in parallel with the load, is usually referred to as the active filter. The proposed method is tailored to design the compensator in such a way that it can simultaneously balance the asymmetric load, as well as correct the power factor of the supply side. For clarity, a static compensator is first considered and a recursive algorithm is utilized to calculate the reactance values. The algorithm is then extended to calculate voltage reference values when the compensator is inverter based. It is evident that the compensator would be asymmetric since the load is unbalanced. The salient feature associated with the proposed method is that the circuit representation of system load is not required and that the load is recognized just by its active and reactive consumptions. Hence, the type and connection of load do not matter. The validity and performance of the new approach are analyzed via a numerical example, and the obtained results are thoroughly discussed.