This paper summarizes the main characteristics of and differences between the influence of mechanical and laser cutting on the magnetic properties of electrical steel sheets. Quasi-static measurements as well as measurements at higher frequencies (50 Hz, 250 Hz, 500 Hz) are reported on three different ferromagnetic materials commonly used in electric machines. Subsequently, a method to consider the effect of cutting in the modeling process is reviewed. This method is based on measurement data obtained by the standardized, wide-spread and fast-to-perform Epstein frame method, eliminates the need of knowing the exact deterioration depth and is applicable to different cutting techniques.