This paper analyzes a novel configuration of transformer core, called octagonal wound core (OWC), and shows the minimization of the excitation current and the reduction of the eddy-current losses. The OWC is compared with the conventional wound core (CWC) configuration. The comparison is based on two-dimensional and three-dimensional finite-element method (FEM) simulations, taking into account the nonlinear properties of the magnetic material of the core. The results show that the OWC reduces the excitation current and the eddy-current losses when compared with CWC. Moreover, several combinations of grades of the grain-oriented silicon steel (GOSS) were investigated so as to further reduce the eddy-current losses and the excitation current.