Aerobic composting is a method for the sanitary disposal of human feces as is used in bio-toilet systems. As the products of composting can be utilized as a fertilizer, it would be beneficial if the composting conditions could be more precisely controlled for the retention of fecal nitrogen as long as possible in the compost. In this study, batch experiments were conducted using a closed aerobic thermophilic composting reactor with sawdust as the bulk matrix to simulate the condition of a bio-toilet for the sanitary disposal of human feces. Attention was paid to the characteristics of nitrogen transformation. Under the controlled conditions of temperature at 60°C, moisture content at 60%, and a continuous air supply, more than 70% fecal organic removal was obtained, while merely 17% fecal nitrogen loss was observed over a two-week composting period. The nitrogen loss was found to occur mainly in the first 24 h with the rapid depletion of inorganic nitrogen but with an almost unchanged organic nitrogen content. The fecal NH–N which was the main component of the inorganic nitrogen (>90%) decreased rapidly in the first day, decreased at a slower rate over the following days, and finally disappeared entirely. The depletion of NH–N was accompanied by the accumulation of NH gas in the ammonia absorber connected to the reactor. A mass balance between the exhausted NH gas and the fecal NH–N content in the first 24 hours indicated that the conversion of ammonium into gaseous ammonia was the main reason for nitrogen loss. Thermophilic composting could be considered as a way to keep a high organic nitrogen content in the compost for better utilization as a fertilizer.