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A system to evaluate nanoparticles efficiency in hyperthermia applications is presented. The method allows a direct measurement of the power dissipated by the nanoparticles through the determination of the first harmonic component of the in quadrature magnetic moment induced by the applied field. The magnetic moment is measured by using an induction method. To avoid errors and reduce the noise signal a double in phase demodulation technique is used. To test the system viability we have measured nanowires, nanoparticles and copper samples of different volumes to prove by comparing experimental and modeled results.