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Transcranial magnetic stimulation (TMS) is a powerful, non-invasive tool for investigating functions in the brain. The target inside the head is stimulated with eddy currents induced in the tissue by the time-varying magnetic field. Precise spatial localization of stimulation sites is the key of efficient functional magnetic stimulations. Many researchers devote to magnetic field analysis in empty free space. In this paper, a realistic head model used in Finite Element Method has been developed. The magnetic field induced in the head by TMS has been analyzed. This three-dimensional simulation is useful for spatial localization of stimulation.