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This paper presents the effects of harmonic distortion on loaded single phase two winding transformer.The impact on K-factor is studied by implementing DC unbalanced and balanced configurations. The measurements are done online from the primary side. The result shows that the current total harmonic distortion (THDi), power factor (PF) and K-factor not only depend on type of loads but also depend on the voltage level which supplies to primary winding. By determining the K-Factor which influence the heating effect, then an appropriate transformer can be designed.