Numerical simulations of ferrofluids are carried out in two-dimensional and three-dimensional space in order to analyze the magnetic effects on flow behavior for magnetic drug targeting (MDT) applications. MDT is a novel technique that allows the concentration of drugs to be guided to a defined target region (TR) with the help of a magnetic field, made possible by the magnetic property of the fluid itself. Ferrofluids, are two-phase solutions composed of magnetic nanoparticles suspended in a carrier fluid Ferrofluids are modeled in a pipe geometry with a sphere-shaped target site and magnetic effects are modeled as fields resulting from current carrying wires. Parameters that are studied include different strengths and locations of magnetic field.  Pressure distributions and velocity contours particularly in the TR show the added flow recirculation and increase in the fluid’s retention time at the TR, due to the magnetic field.Furthermore, the studies presented here provide a fundamental understanding of the behavior of a magnetic fluid, modeled here as a single-phase fluid thereby affirming the feasibility of such fluids in MDT applications with regard to enhanced drug transfer.