The contactless rotary transformer has been widely used in rotary ultrasonic machining because of less heat, less vibration, no friction and higher revolving speed. However, the power transfer efficiency of the rotary transformer is rather low. So it is necessary to adopt the method of capacitance compensation to maximum transfer efficiency, and more accurate compensation model will achieve better transmission performance. However, distributed capacitance existing in the primary and secondary winding current compensation models, which will seriously effect accuracy of capacitance compensation. In this study, a new mathematical model of four circuit compensation topologies is proposed, which takes distributed capacitance into consideration. Moreover, a series of experiments are conducted, which focus on the transmission efficiency and output power. The results of experiments have a good consistency with the new model and show higher accuracy compared with the previous models. In addition, the effect of distributed capacitance at different frequencies is also researched.