Improved algorithm for estimating anisotropic formation resistivity profile using a multi-component induction tool are disclosed. A method for estimating anisotropic formation resistivity profile of a formation comprises obtaining borehole corrected log data and determining at an azimuth angle of the formation. One or more formation bed boundaries are located and initial formation properties are calculated. One of a plurality of inversion windows is sequentially selected and a one-dimensional inversion of each of the sequentially selected one of the plurality of inversion windows is performed.