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As the automotive industry vies to meet progressively more stringent global CO2 regulations in a cost-effective manner, electrified drive system cost and losses must be reduced. To this end, a parametric Drive Unit (DU) mechanical-loss model was developed to aid in the design and development of electrified propulsion systems, where the total propulsion system cost and DU losses can be directly linked (e.g., Hybrid Electric Vehicle (HEV) motor/inverter/engine content, or Battery Electric Vehicle (BEV) battery size). Many DUs for electrified propulsion systems are relatively “simple” drive systems, consisting of gears, bearings, shafts, lip seals, and an electric motor(s), but without clutches, high-pressure lube systems, or chains/belts as found in conventional automatic transmissions. The DU loss model described in this paper studies these simple DUs, with the mechanical losses dissected into 10 loss components.