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Magnetic particles are used in various areas ranging from engineering to biomedical fields. The particles are controlled by an external magnetic field and the magnetized particles interact between themselves, resulting in some interesting behaviors. Various computational analyses have been recently presented. But, since most of these works are based on a point-dipole model, the accurate effects of a finite volume and mutual interactions are not calculated. In addition, full field analysis has a serious problem with remeshing for moving particles. This paper proposes a new approach, where the movement of particles is captured using a level set function on a fixed background mesh for magnetic field analysis. The magnetic forces on each particle by body force density are inserted into the driving forces in dynamic equations.