This paper presents a simulation technique for analyzing acoustic characteristics of piezoelectric underwater transducers. A finite element method is adopted for modeling piezoelectric coupled problems including material damping and fluid-structure interaction problems by taking system matrices in complex form. For the finite element modeling of unbounded acoustic fluid, infinite wave envelope element (IWEE) is adopted to take into account the infinite domain. An in-house finite element program is developed and technical issues for implementing the program are explained. Using the simulation program, acoustic characteristics of tonpilz transducer are analyzed in terms of modal analysis, radiated pressure distribution, pressure spectrum, transmitting-voltage response and impedance analysis along with experimental comparison. The developed simulation technique can be used for designing ultrasonic transducers in the areas of nondestructive evaluation, underwater acoustics and bioengineering.