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Permanent magnet transverse flux machine (PMTFM) is well known for its high torque density and is interested in various direct-drive applications. Due to its complicated 3-D flux components, design and design optimization of a PMTFM is more difficult and time consuming than for radial flux electrical machines. This paper addresses two important design considerations for PMTFM - the influence of permanent magnet leakage flux, which plays an important role in the determination of machine output torque, and the leakage inductance. A new simple method to provide a quick estimation of the armature leakage inductance is proposed, avoiding use of complicated 3-D equivalent reluctance network model to estimate the circumferential armature leakage flux component, and the pole face fringing flux component. Analysis results are supported by 2-D, and 3-D finite element (FE) analysis results, and measurement results on a prototype surface-mounted PMTFM.