The performance characteristics of magnetic fluid seals are studied numerically as a function of working gap, pole width, angle of pole sharpening, and shaft speed. The temperature distribution of a magnetic fluid seal with multiple tooth is investigated as a function of the contact fraction of magnetic fluids at the periphery of pole tooth using a finite element method. The most significant design parameter of a magnetic fluid seal is the working gap between the pole pieces and the rotating shaft. The result shows that with increasing the working gap, the friction torque decreases radically. The practical working gap for the pole pieces with triangular tooth zone profile is 0.2-0.4mm. The FEM results indicate that the optimal filling of a magnetic fluid between the pole pieces and the shaft is very important due to the accumulations of nonuniform friction heating within the pole pieces, which may interfere the magnetic circuit flow.