AC loss is one of the important parameters in HTS (High Temperature Superconducting) AC devices. Among the HTS AC power devices, the transformer is the essential part in the electrical power system. But unfortunately, the transformer is the worst HTS device concerning AC loss because of very large magnetization loss due to high magnetic field applied to the HTS wire. We calculated the magnetization losses in HTS pancake windings for transformer according to the operating temperature. Two kinds of arrangement of HTS pancake windings were adopted for calculation of AC losses of a shell type transformer, and the analysis results were presented and discussed.