an apparatus and method for compensating for transmit power losses that are caused by the addition of a clipping or crest factor reduction module in the tx path of a communications system . the method includes applying a gain to a signal input into the crest factor reduction module , so that a power of a signal output from the crest factor reduction module is equal to a power of a signal output from a baseband signal generation module in the tx chain . the apparatus and method have the benefit that the peaks of the signal to be transmitted will be consistent over a wide range of tx power values .