This paper presents simulation-based analysis of energy flow of a wheel loader. The objective of this study is to analyze the energy flow of a wheel loader during driving and working. Because the wheel loader powertrain consists of a mechanical and hydraulic powertrain, the generated power from the engine is divided into 2 powertrains. Further, a virtual prediction of energy flow in the powertrains is a key factor in terms of optimal design. Accordingly, the simulation model that is able to predict the virtual energy flow is developed and analyzed in this study. The proposed wheel loader simulation model has been constructed in the Matlab/Simulink environment. It is expected that the developed simulation model will analyze the energy flow and efficiency in the design stage.