Suppose two coils are placed near each other,And current I-1 is passed through coil 1 , then there is magnetic field (B1) produced in it. Using right hand thumb rule, we can see the direction of Magnetic field. As the current is AC, the field also changes, and Field (B1) times number of turn N1 is magnetic flux(Φ), so flux changes,
Since the two coils are close to each other, some of the magnetic field lines through coil 1 will also pass through coil 2.Then there will be an induced emf associated with the changing magnetic flux in the second coil,given by Faraday's Law:
The rate of change of magnetic flux in coil 2 is proportional to the time rate of change of the current in coil 1:
where the proportionality constant M21 is called the mutual inductance. It can also be written as
similarly if we pass current from coil two:
There will be production of emf in first coil due to AC current in coil 1, given by
and comparing it to the emf generated due to a inductor's changing current
so mutual inductance is
By principle of reciprocity means Mutual inductance is reciprocate from one side to other in equal manner.