A power compensation differential scanning calorimeter that uses one absolute temperature measurement, two differential temperature measurements, a differential power measurement, and a five-term heat flow equation to measure the sample heat flow. The calorimeter is calibrated by running two sequential calibration experiments. In a preferred embodiment, the first calibration experiment uses empty sample and reference pans, and the second calibration experiment uses sapphire specimens in the sample and reference holders. In an alternate embodiment, sapphire calibration specimens are used in both the first and second calibration experiments.