Several factors including internal factors which are related to the structure and components of transmission and external factors which are related to the running condition influence transmission efficiency (TE) collectively. Selected one manual transmission as the research object, this paper mainly analyzes factors including gears and bearings power loss through theoretical calculation and the external factors, such as gears, temperature and torque. Firstly, with a methodology, the overall efficiency of the manual transmission is calculated based on factors. Then, this paper discusses efficiency through external factor. This transmission is experimented on transmission test bench. On the bench, the driving motor (DM) simulates the power input of engine and the load motor (LM) simulates the whole resistance of vehicle. The mechanical transmission is operating in different speeds, torques and work temperature, thus the corresponding data are obtained. The theoretical value and actual experimental data are combined to analyze TE and results shows that they are high-positive correlation. Thus, the theoretical value got from the calculation can simulate the actual test fairly accurate and may also aid to the early design to shorten cycle.