Abstract: Electricity is an essential part of everyone’s life hence it is quite impossible to live without it. Each and every appliance which are used for domestic purpose are totally depended on electricity. That’s why Transformer plays a vital role in providing supply of much-needed electricity to homes and offices. For Residential and Commercial properties, electricity is supplied through Transformer that is why Transformer plays an important role in our lives. An Ideal Transformer is the transformer which has 100% efficiency This means that the power supplied at the input terminals should be exactly equal to the power supplied to the output terminals, since efficiency can only be 100% if the output power is equal to the input power. But practically, nothing in this universe is ideal. Similarly, since the output power of a transformer is never equal to the input power which happens due to some number of electrical losses inside the core and windings of the transformer, so we never get to see a 100% efficient transformer. Transformer is a static device, i.e., we do not get to see any movements in its parts, so no mechanical losses exist in the transformer and only electrical losses are observed. In this project, it was studied and compare magnetic (iron) losses in transformer using different type of core materials i.e., silicon steel and air core.