This study examines the heat transfer enhancement achieved from a vertical rectangular fin embedded with circular perforations under natural convection as compared to an equivalent solid (non-perforated) fin. The effect of perforation profile, diameter of the perforation and its pitch on the temperature distribution are analysed by using finite element method. Establishing finite element procedure for heat transfer analysis of fins with perforations and comparing performance of perforated fin results verses non-perforated fins; it was observed that perforated fins show considerable reduction in temperature. The increase in perforation diameter resulted in reduced fin temperatures compared to all other variations and is suggested to be the best measure for enhancement of heat transfer. The finite element method results closely match with published experimental thermocouple results of previous investigators within±10% deviation. The finite element analysis procedure developed can be used for heat transfer analysis of fins with different kinds of perforation.