In this study, the heat balance test of an engine was conducted, and the heat released to coolant is measured and corrected using a power adjustment factor for high fuel temperature to simulate heat rejection of the engine. An engine-converter matching simulation program which can compute the engine speed, transmission output speed, transmission input and output power is developed from the vehicle, transmission and engine performance curve. With this information and the engine heat rejection characteristics, the engine and transmission heat rejection rates can be determined at given condition. In analyzing the air mass flow, a sub program computing the air mass flow rate from the equation of the pressure balance between cooling fan static pressure rise and pressure losses of cooling components is developed.