In this paper, the three dimensional finite element method previously presented by these authors is applied here, for the first time, to laminated iron core devices with considerable magnetic saturation. This includes a practical form of anisotropy effects associated with magnetic nonlinearities in laminated cores. The calculation of the stored magnetic energy in the field is based on three distinct B-H magnetization characteristics in the x, y and z directions depending on the orientation of the iron core laminations. Agreement between calculated and measured flux densities and magnetizing inductance of a coil and a single phase shell type transformer confirm the validity of the method and its applicability to saturated iron cores.