In this paper, efficiency analysis and design of contactless electric energy transmission systems using inductive method are elaborated. Large leakage inductances of the systems are to be compensated to achieve resonance conditions for maximum efficiency in energy transfer from a launch side to a receiving side where compensating circuits are utilized in both sides. Considering the circuit models of a contactless electrical energy transmission system, the effects of different system parameters including the compensating capacitors are analyzed for a specified frequency range and coupling factor. An algorithm is proposed to determine the optimal compensating capacitors and system resonance frequency to achieve high efficiency.