From wikipedia, saturation is the following:
Seen in some
magnetic materials, saturation is the state reached when an increase in applied external
magnetic field H cannot increase the
magnetization of the material further, so the total magnetic flux density B more or less levels off.
So how does saturation affect the inductance of a transformer?
Let us start by introducing a few equations. Inductance [itex]L[/itex] is defined as
[itex]L = \frac{\phi}{I}[/itex] (1)
where [itex]\phi[/itex] is the amount of flux inside the core and [itex]I[/itex] is the current. [itex]\phi[/itex] can also be written as
[itex]\phi = \frac{NI}{\mathcal{R}}[/itex] (2)
where [itex]NI[/itex] is the number of turns multiplied with the current, also known as MMF (magnetomotive force) and [itex]\mathcal{R}[/itex] is the reluctance of the magnetic core. Reluctance can be thought to be similar to resistance as in an electrical circuit, see equation (2) which is analogous to Ohm's law but for magnetic circuits.
Reluctance can be written as
[itex]\mathcal{R} = \frac{l}{\mu _0 \mu _r A}[/itex] (3)
where [itex]l[/itex] is length of the core, the product, [itex]\mu _0 \mu _r = \mu[/itex], is the permeability of the material and [itex]A[/itex] is the cross sectional area of the core, see figure below.
If we use equation (2) and plug it into equation (1) we get
[itex]L = \frac{N}{\mathcal{R}}[/itex] (4)
and if we now put equation (3) into (4) we get
[itex]L = \frac{N}{l/(\mu _0 \mu _r A)} = \frac{N \mu _0 \mu _r A}{l}[/itex] (5)
So how does this help us? If we look at equation (5) everything appear to be constants, but take a look at this picture (it’s commonly referred to as BH-curve, look it up if you are not familiar with it):
If I now tell you that the slope of these curves in the linear regions is equal to the permeability. So when we go into the saturation region, our slope becomes very small. If we now look back to equation (5) we can see that if our permeability (slope) decreases, our inductance also decreases. Look at the picture below to see how the magnetizing current of a transformer is affected when you enter the saturation region.
Did I answer your question? If not let me know.
EDIT: I should emphasize that it is the
magnetizing inductance we are talking about.