The magnetostrictive material is magnetized in magnetic field and produces a nonuniform demagnetizing field inside and outside it. The demagnetization is decided by the permeability of magnetostrictive material and its size. The magnetoelectric performances are determined by the synthesis of the applied and demagnetizing fields. An analytical model is proposed to predict the magnetoelectric voltage coefficient (MEVC) of magnetostrictive/piezoelectric laminate composite using equivalent circuit method, in which the nonuniform demagnetizing field is taken into account. The theoretical and experimental results indicate that the MEVC is positively connected with the permeability and the piezomagnetic coefficient of magnetostrictive material. To obtain the maximum MEVC, both the permeability and the piezomagnetic coefficient of magnetostrictive material should be taken into account in selecting the suitable magnetostrictive material.