In order to compare the system efficiency of two hybrid electric vehicles, TOYOTA Prius and HONDA Insight, this study systematic explores the relation of gear angular velocity and torque transmitted. At First, the study analyzes the mechanism freedom by Grubler’s theory, and uses the lever simulation and Fundamental circuit to find the rpm and torque of each linkage. Finally the efficiency of the power distribution mechanism at different driving conditions is analyzed and compared. By estimating the efficiency of Prius and Insight system, this study incorporates a clutch into Prius system to improve the drawbacks of motor mode and to reduce the electric power consumption of the vehicle.