The loss effect in smart materials, the active part of a transducer, is of significant importance to acoustic transducer designers, as it directly affects the important characteristics of the transducer, such as the impedance spectra, frequency response, and the amount of heat generated. It is therefore beneficial to be able to incorporate energy losses in the design phase. For high-power low-frequency transducers requiring more smart materials, losses become even more appreciable. In this paper, similar to piezoelectric materials, three losses in Terfenol-D are considered by introducing complex quantities, representing the elastic loss, piezomagnetic loss, and magnetic loss. The frequency-dependent eddy current loss is also considered and incorporated into the complex permeability of giant magnetostrictive materials. These complex material parameters are then successfully applied to improve the popular plane-wave method (PWM) circuit model and finite element method (FEM) model. To verify the accuracy and effectiveness of the proposed methods, a high-power Tonpilz Terfenol-D transducer with a resonance frequency of around 1 kHz and a maximum transmitting current response (TCR) of 187 dB/1A/μPa is manufactured and tested. The good agreement between the simulation and experimental results validates the improved PWM circuit model and FEA model, which may shed light on the more predictable design of high-power giant magnetostrictive transducers in the future.