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Magnetic components using soft core materials are widely used in power electronic converters. The hysteresis effect of the material leads to power loss and harmonic distortion. If this effect can be modelled in system-level time-domain simulation, the performance of the magnetic component in combination with power converters can be predicted more accurately during the design phase. This work proposes an approach to model the hysteresis effect of soft magnetic materials in magnetic circuits based on the permeance-capacitance analogy.