Breaking down the different types of losses that occur within a vehicle's drivetrain, steady-state losses occur while the vehicle is cruising at a steady or constant speed, where average angular acceleration is zero because no additional torque is being called upon to accelerate the drivetrain's rotational mass. Within the drivetrain, steady-state power losses occur from the following components: the transmission torque converter (in the case of automatic transmissions), the transmission oil pump, clutch pack drag, one-way clutch drag, seal and bearing drag, gear windage and friction, and final drive losses.

Dynamic drivetrain losses, on the other hand, include the rotational inertial losses from angular acceleration occurring within the drivetrain while accelerating. In fact, during acceleration there are losses from the rotational inertia of spinning transmission and differential internals as well as driveline components like driveshafts and prop shafts, but also from the increased load and friction being generated between the gears within the transmission and differential(s). And as you already know, with increased friction comes increased heat (more on that later).

It's important to understand the difference between steady-state and dynamic losses because SAE net horsepower, as reported by the auto industry, is measured in a steady-state condition. What this means is that the horsepower rating for your vehicle doesn't take into account dynamic losses that occur during acceleration. However, when you strap your car to a chassis dyno to measure its engine's output, the test is conducted at wide-open throttle and power is measured by the speed at which the dyno's rollers are accelerated. This means that drivetrain losses from rotational inertia and increasing friction, drag and windage are at work and will reduce the peak horsepower reading at the wheels.

Within the drivetrain itself, the primary loss sources are the differential and final drive, with further losses stemming from within the transmission, and in the case of AWD vehicles, from the transfer case. Within the transmission, as much as 30 to 40 percent of power loss can be attributed to the pump, with the clutch contributing another 20 to 25 percent. The rest of the loss within the transmission comes from seal drag, gear meshing, bearings, bushings and windage (drag on the gears caused by the gear oil). However, when dyno testing in the direct drive (1:1) gear, power is delivered directly through the mainshaft of the transmission, so the only loss sources are windage, friction and drag, resulting in total at-the-wheel losses as low as 1.5 to 2 percent, according to the published data.