Many engineering problems require the calculation of effective material properties of a structure which is composed of repeated micro-structures. The homogenization method has been used to calculate the effective (homogenized) properties of composites and several homogenization procedures for different physical fields have been introduced. This research describes the modified homogenization technique for magnetostatic problems. Assuming that the material is periodically repeated, its effective permeability can be prescribed by calculating the homogenized magnetic reluctivity using the finite element analysis of the micro unit cell. Validity of the suggested method is confirmed by comparing the results by the energy based method as well as the widely known homogenization method.