This paper presents a simplified control method for three-phase active power filter by calculating the required reactive and harmonics current of the load. The active power filter needs this current to correct the power factor and eliminate the generated harmonics by nonlinear loads. This method has the advantages of using only one current sensor and effectiveness in achieving the required compensation characteristics. The proposed circuit may be operate at frequencies ranging from 40 to 60 Hz, and it also responds very fast under sudden changes in the load conditions. The considered system is analyzed and a prototype is also developed and tested to demonstrate the performance of the implemented active power filter in the power factor improvement and harmonics elimination. Finally, predicted results are verified experimentally.