This paper proposes an iteration-based algorithm for the optimum design of a high frequency transformer for solid-state transformer (SST) applications. This algorithm minimizes the total owning cost (TOC) of a distribution type solid-state transformer. The unique features of this algorithm compared with the available algorithms in the literature are as follows: it iterates eight design variables, four constraints are defined for selecting the valid designs, and it works with different core materials and AC test voltages. The algorithm uses various user-defined data inputs to calculate loss capitalization values for TOC calculation. In every iteration, TOC is estimated, and calculated values of design constraints are compared with their threshold limits. A case study is conducted on a high-frequency transformer (HFT) incorporated in 1000-kVA, 11-kV/415-V, Dyn11 three-phase wound core SST. This is to determine the optimum design parameters. In this case study, the algorithm was iterated with 2,100,000 design data inputs, generating 258,272 designs that satisfied all design constraints. The optimum design with minimum TOC is selected from the generated 258,272 designs. The optimum design is validated using finite element analysis in ANSYS software. Comparing the results of both analyses, the deviation is less than 5%. Hence, the algorithm’s reliability is proved.