Power losses in transmissions are mostly a result of friction between elements, and gears-oil interaction. They are inevitable, but with a use of optimization, they can be minimized. The main components of a geared transmission are bearings, gears, shafts, and seals. Gears and bearings are responsible for the majority of power loss, and they are studied in this paper. Several models are presented, which allow power loss estimation in bearings and gears. In addition losses in shaft seals are also considered.