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Purpose The purpose of this paper is to present the entropy analysis of ferrofluid inside a porous space with magnetic force. Homogenous model with second law analysis is also taken into account. Design/methodology/approach Innovative model has been proposed and designed using control volume finite element method. Findings Experimental results demonstrate that Bejan number augments with augment of Rayleigh. As Hartmann number rises, exergy loss enhances. Exergy loss increases by increasing Hartmann number, whereas magnetic entropy generation reduces with the decrease of Ha. The proposed model can be used for combustion process and optimizing the performance of energy conversion system like gas turbine. Originality/value To the best of authors’ knowledge, this model is reported for the first time.