Calculating power dissipation for AC termination on a clock signal involves understanding the clock frequency, signal amplitude, and capacitance. Power dissipation occurs primarily at the edges of the square wave, with the formula P_d = f C ΔV² applicable when rise/fall times are short compared to the RC time constant. Simulations, such as those done in LTspice, can provide insights, showing that AC termination can reduce power dissipation significantly compared to resistor termination. However, practical considerations like functionality and reliability often take precedence over power savings. Overall, a solid grasp of the underlying principles is essential for effective circuit design.