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I know that inductance can be calculated with the formula $$ L = \frac{µN^2A}{l} $$ where \$L\$ is inductance, \$µ\$ is magnetic permeability(1 in air), \$A\$ is the area of the coil(cylinder flat face), \$N\$ is the number of turns and \$l\$ is the length of the inductor.

However, regarding length, is it utilised as the literal length from top to bottom of the inductor(e.g. the inductor is 2cm long), or is it used as the total unwound length of the inductor(e.g. 10cm of wire was used to make this inductor)?

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\$µ\$ is magnetic permeability(1 in air)

Nope. \$\mu\$ is the product of the relative permeability of the core material (air/vacuum, ferrite, whatever), \$\mu_r\$, and the air/vacuum permeability, \$\mu_0\$:

$$ \mu=\mu_0 \ \mu_r $$

Air's magnetic permeability is \$\mu_0=4\pi \ 10^{-7}\$ Henries per metre, and its relative permeability is 1.

The correct formula is

$$ L = \mu_0 \ \mu_r \ \frac{A \ N^2}{\ell} $$

is it utilised as the literal length from top to bottom of the inductor(e.g. the inductor is 2cm long)

Yes, \$\ell\$ here is the effective (final) length of the coil.

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Original image

For transformers where magnetic circuits are involved, \$\ell\$ becomes the Magnetic Path Length.

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    \$\begingroup\$ Note also, this is the formula for a long solenoid (ideally infinite, but practically, l >> dia), and mu has to fill space around the coil both inside and out, so this isn't applicable to the case of a rod core for example. \$\endgroup\$ Commented Jul 22 at 9:30
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    \$\begingroup\$ @TimWilliams yes, there are various assumptions for the formula to be accurate enough e.g. 1-layer winding, wire thickness to coil diameter ratio to be less than a certain number, etc. I just didn't want to include those details to make the post more complicated. \$\endgroup\$ Commented Jul 22 at 9:36

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