We have developed a shape varying magnetic tunneling junction (SVM) with a Fe/NiFeB free layer for use in magnetic logic circuits. Inserting the thin Fe film between an NiFeB free layer and MgO tunneling barrier improved the magnetoresistance (MR) ratio: it increased up to 130, as the thickness of the Fe film increased. In addition, the switching current distribution of the SVM was reduced to 8. By using NiFeB as a free layer, the roughness under the MgO was reduced and the crystallization of the MgO was enhanced. This led to both the high MR ratio and the low switching current distribution. Our developed Fe (0.4 nm)/NiFeB free layer satisfies the requirement of the MTJ's characteristics that the magnetic logic circuits operate with a high bit yield.