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This paper presents a new dynamic model of equivalent circuit to simulate in the time-domain the effects of saturation and power losses in a nonlinear magnetic component. The parameters of the model are a nonlinear inductance and a nonlinear loss resistance that are computed via two-dimensional finite elements. The effectiveness of the model is analyzed in the case of a soft ferrite inductor excited by a sinusoidal voltage source at frequencies of 500 Hz and 40 kHz. The resulting voltage and current waveforms of the inductor taken in the laboratory are then compared with those computed via the PSIM circuit simulator. PSIM is a simulation software designed for power electronics, motor control, and dynamic system simulation.