Majority studies on magnetic hyperthermia properties were carried out by modifying the saturation mass magnetization (Ms) of the samples. Here efforts were made to enhance the specific heat generation rate (SHGR) of single domain superparamagnetic (SP) material by modifying its magnetic susceptibility. Well crystallined, inverse spinel structured and close to monosize Fe1−xMgxFe2O4 (x = 0, 0.1, 0.2, 0.3, 0.4, & 0.5) compounds with nanosphere geometry (diameter 10 nm) were synthesized by solvothermal reflux method at ≈300°C. In the literature it is reported that magnesium ferrites synthesized at high temperatures yield mixed (normal & inverse) spinel structures. The inverse spinel structure was confirmed by X-ray powder diffraction (XRPD), lattice vibrations and magnetic characteristics of the compounds. The Ms of the compounds decrease with increase of substituent Mg2+ concentration. Under high excitation energy the inter-valance charge transfer whereas under low excitation energy the intra-valance charge transfer process were predominant. The as-synthesized nanospheres were encapsulated by hydrophobic oleic acid and were exchanged by hydrophilic poly(acrylic acid) by chemical exchange process. Estimated magnetic hyperthermia power or SHGR of the x = 0, 0.3 & 0.5 were 11, 11.4 & 22.4 W per gram of respective compounds, respectively, under 63.4 kA m−1 field amplitude and 126 kHz frequency. The SHGR enhances with Mg2+ concentration though its Ms reduces and is attributed to reduced spin-orbital coupling in the compounds with enhanced Mg2+ concentration. This may pave a new way to develop magnetic hyperthermia material by modifying magnetic susceptibility of the compounds against to the reported Ms modification approach. The obtained high SHGR of the biocompatible compounds could be used in magnetic hyperthermia applications in biomedical field. © 2017 Elsevier B.V.