The cascaded H‐bridge multi‐level converter is the main topology of high‐voltage and high‐capacity converter in renewable energy power generation, energy storage system and reactive power compensation equipment. The parameter design of cascaded H‐bridge multi‐level converters directly determines the material cost and performance. Taking the output current distortion rate and the ripple voltage of the capacitor of the cascaded H‐bridge multi‐level converter as the constraint conditions, this paper proposes an overall parameter optimal design method of the cascaded H‐bridge multi‐level converter based on the optimization of the total material cost. Finally, the effectiveness of the proposed parameter design method is verified by the simulation result.