The XY model is a simplified insulation model for transformers that aims to connect the frequency spectrum of major insulation, insulation paper, and oil. It enables the calculation of the paper's frequency spectrum, facilitating a quantitative evaluation of the transformer's insulation status. Given the scarcity of research addressing the accuracy of the XY model and its corresponding equivalent circuit, this paper investigates the accuracy of the XY model and conducts an in‐depth analysis of the error associated with its equivalent circuit. Firstly, the frequency spectrum of oil‐paper insulations based on the XY model with varying moisture content and structure configurations were measured, followed by the simulation of both the corresponding 2D‐coaxial and XY models. By comparing the results obtained from these simulations with experimental data on oil‐paper insulation, the accuracy of XY model is verified. Subsequently, two variants of the equivalent circuit of the XY model are derived by combining the oil, spacer, and paper differently, which denoted as Type I and II circuits. Finally, we analyzed and explained the errors present in these equivalent circuits compared with the XY model. Our findings show that the width‐thickness ratio of oil‐paper insulation is the most critical influencing factor, while moisture content and insulation structure have a less decisive impact. Notably, for general transformers, as the width‐thickness ratio is between 30 and 70, the relative error of the Type I circuit remains consistently below 0.3% across different frequencies. Consequently, the Type I circuit proves to be a more suitable representation of the equivalent circuit for the XY model in the context of general transformers. © 2024 Institute of Electrical Engineers of Japan. Published by Wiley Periodicals LLC.