What is the induction principle of transformers?

A transformer consists of laminated silicon steel cores on which one or more coils of wire have been wound. The two windings are electrically isolated from each other (with the exception of autotransformers) and usually have widely different numbers of turns.

If the transformer primary is connected to an A.C. power source of suitable voltage, a small no-load current called the exciting current will flow into the coil and produce a magnetic flux in the iron core. Since the source is A.C., the flux will also be alternating. This alternating magnetic flux links the secondary turns and induces a small voltage in each turn. The induced volts per turn of the secondary windings adds to appear across the secondary terminals. It should be understood that the flux induces a voltage in each primary turn equal to that in each secondary turn. The difference between the total induced primary voltage and the applied voltage is approximately equal to the IR drop. The ratio of turns between the primary and secondary coils determines the output voltage.