A model to predict friction-related mechanical efficiency losses of hypoid gear pairs is proposed in this study. The model includes a gear contact model, a friction prediction model, and a mechanical efficiency formulation. The friction model uses a friction coefficient formula obtained by applying multiple linear regression analysis to a large number of elastohydrodynamic lubrication analyses covering typical ranges of key parameters associated with surface roughness, geometry, load, kinematics, and the lubricant. Formulations regarding the kinematic and geometric properties of the hypoid gear contact are presented. The load and friction coefficient distribution predictions are used to compute instantaneous torque/power losses and the mechanical efficiency of a hypoid gear pair at any given position. Results of a parametric study are presented at the end to highlight the influence of key operating conditions, surface finish, and lubricant properties on mechanical efficiency losses of hypoid gears.