Interior permanent-magnet synchronous motors (IPMSMs) produce both magnetic and reluctance torques. The reluctance torque is due to the difference between the d- and q-axis inductances based on the geometric rotor structure. The steady-state performance analysis and precise control of the IPMSMs greatly depend on the accurate determination of the parameters. The three essential parameters of the IPMSMs are the armature flux linkage of the permanent magnet, the d-axis inductance, and the q-axis inductance. In the basic design step of an IPMSM, the inductance parameters are very important for determining the motor characteristics, such as the input voltage, torque, and efficiency. Thus, it is very important to accurately estimate the values of the motor inductances. The inductance parameters of IPMSMs have nonlinear characteristics along the magnet size because the iron core is saturated by the magnet and armature reaction fluxes. In this study, the inductance parameters were calculated using both the magnetic-equivalent-circuit method and the finite-element method (FEM). Then the calculated parameters were compensated by the saturation coefficient function, which was also calculated via the magnetic-equivalent-circuit method and FEM.