This paper describes an analytical solution to use a generic 2D finite difference method to accurately calculate the quasi 3D spatial distribution, components, and total core losses in transformer cores. The solution takes into account: (1) magnetic anisotropy and nonlinearity of the core material; (2) all components of iron losses of the core material, including losses in directions other than the rolling direction; and (3) joint model and localized losses due to the distorted flux distribution in the joint regions (due to core gaps) across the core-stack. The results are used to: (1) calculate very accurately the total core losses of a transformer at the design stage every time, for all core materials, at all operating inductions, for all core geometries, for both 50 Hz and 60 Hz; (2) understand the contribution of cross losses, harmonics, and joints to the total losses of a core; (3) evaluate the impact of various joint attributes, such as, type of joint, number of steps, number of laminations per step, size of gaps, and lamination thickness on the total performance of the core; and (4) improve the core loss performance of transformers by optimizing core design and core material parameters. This paper presents the analysis as applied to 3-phase, 3-limb cores. The paper also presents the results of the extensive experimental/test verification performed on a number of model cores in the lab as well as on a large number of actual commercial transformer cores with excellent agreements. The results have been used to calculate core losses of stacked power and distribution transformers with consistent accuracy.