An analytical study on the contact characteristics of the parallel axle toroidal CVT has been detailed. The shapes of the contact areas between the power roller and input as well as output disks are considered to be ellipses. Mathematical equations for estimating the torque capacity, power loss due to spin action, and contact efficiency of the elliptical contacts of the parallel axle toroidal CVT are formulated and expressed in the form of integrals which can be readily evaluated by numerical scheme. The contact efficiency calculations of the parallel axle toroidal CVT have been developed for a precise understanding of the spin effects under the effect of system parameters. Numerical results are presented, which can help the designer to select the proper system parameters to minimize the undesirable spin effects.