By using a coupled circuit, time-stepping, two-dimensional finite element method (2-D FEM), the performance of a stand-alone permanent-magnet synchronous generator (PMSG) with inset rotor can be computed without involving the classical two-axis model. The effects of interpolar air gap length and armature resistance on the load characteristics are investigated. It is shown that the interpolar flux density, and hence the amount of voltage compensation, is affected by magnetic saturation. Validity of the coupled circuit and field analysis is confirmed by experiments on a prototype generator. The machine exhibits an approximately level load characteristic when it is supplying an isolated unity-power-factor load.