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A three dimension electromagnetic model for a power distribution transformer is set up. In this model both windings (low voltage-LV and high voltage-HV windings) are considered to be composed of several uniformly distributed disk shape coils, in such a model, the coils have the same corresponding resistances as their actual. Base on 3D finite element method, the leakage magnetic fields, and stray losses of the transformer under conditions of with or without magnetic shunts are simulated, and then compared with experiments. The simulation results are in accordance with experiments, the magnetic shunt method for transformer tank is economic and effective.