The most widely used primary protection for the internal fault detection of the power transformer is current ratio differential relaying (CRDR) with harmonic restraint. However, the second harmonic component could be decreased by magnetizing inrush when there have been changes to the material of the iron core or its design methodology. The higher the capacitance of the high voltage status and underground distribution, the more the differential current includes the second harmonic during the occurrence of an internal fault. Therefore, the conventional second harmonic restraint CRDR must be modified. This paper proposes a numerical algorithm for enhanced power transformer protection. This algorithm enables a clear distinction regarding internal faults as well as magnetizing inrush and steady state. It does this by analyzing the RMS fluctuation of terminal voltage, instantaneous value of the differential current, RMS changes, harmonic component analysis of differential current, and analysis of flux-differential slope characteristics. Based on the results of testing with WatATP99 simulation data, the proposed algorithm demonstrated more rapid and reliable performance.