An improved hydrostatic unit(HSU) model is proposed by considering the flow loss in order to analyze the power flow characteristics of a hydromechanical transmission(HMT) and a network analysis algorithm is presented to determine the torque and speed of each element of the HMT. To calculate the torque and flow loss of a pump and a motor in HSU, an effort and flow concept is introduced, which can be used to establish a torque and speed matrix in the network analysis. It is found from the network analysis that magnitude of the HSU stroke increases to maintain the same output speed in order to compensate the flow Boss in the HSU and the efficiency of the HMT shows the lowest value in the 1st speed since the HSU has the largest flow loss in the 1st speed and the flow loss decreases as the speed ratio upshifts.