One of the still open issues within low-frequency magnetics is the inclusion of µr in the calculations using the magnetic charge method. In this paper a new iterative method to take the relative permeability into account is investigated. Results show that the model accurately accounts for the permeability of a magnet within 4 iterations. In part II the computational time is decreased by using a polynomial approximation of the charge density. Finally, in part III, a combination of a magnet and a soft-magnetic material is modeled