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This paper describes a method to estimate effective permeability of magnetic composite materials for static field. In the present method, the structures of the composite materials are assumed to be periodic, and the unit cell is defined. The effective permeability is determined on the basis of magnetic energy balance in the unit cell. The present method considers magnetic interaction between inclusions of the composite materials, and is more accurate and useful. Therefore, the present method can be more widely applied than conventional models, for example, the Maxwell-Garnett formula and the Bruggeman formula. Validity of the present method is confirmed by numerical analyses. This approach can be applied also to nonlinear magnetic composite materials.