This paper presents a detailed numerical investigation of the novel active microfluidic mixer proposed by Wen et al. (Electrophoresis 2009, 30, 41794186). This mixer uses an electromagnet driven by DC or AC power to induce transient interactive flows between a water-based ferrofluid and DI water. Experimental results clearly demonstrate the mixing mechanism. In the presence of the electromagnet's magnetic field, the magnetic nanoparticles create a body force vector that acts on the mixed fluid. Numerical simulations show that this magnetic body force causes the ferrofluid to expand significantly and uniformly toward miscible water. The magnetic force also produces many extremely fine finger structures along the direction of local magnetic field lines at the interface in both upstream and downstream regions of the microchannel when the external steady magnetic strength (DC power actuation) exceeds 30 Oe (critical magnetic Peclet number Pem,cr = 2870). This study is the first to analyze these pronounced finger patterns numerically, and the results are in good agreement with the experimental visualization of Wen et al. (Electrophoresis 2009, 30, 41794186).The large interfacial area that accompanies these fine finger structures and the dominant diffusion effects occurring around the circumferential regions of fingers significantly enhance the mixing performance. The mixing ratio can be as high as 95% within 2.0 s. at a distance of 3.0 mm from the mixing channel inlet when the applied peak magnetic field supplied by the DC power source exceeds 60 Oe. This study also presents a sample implementation of AC power actuation in a numerical simulation, an experimental benchmark, and a simulation of DC power actuation with the same peak magnetic strength. The simulated flow structures of the AC power actuation agree well with the experimental visualization, and are similar to those produced by DC power. The AC and DC power actuated flow fields exhibited no significant differences. This numerical study suggests approaches to maximize the performance of the proposed rapid magnetic microfluidic mixer, and confirms its exciting potential for use in lab-on-a-chip systems.