We present a faster and simpler approach for the calculation of iron and magnet losses and torque of an interior permanent-magnet synchronous machine (IPMSM) than finite-element methods (FEM). It uses a magnetic equivalent circuit (MEC) based on large elements and takes into account magnetic saturation and magnet eddy currents. The machine is represented by nonlinear and constant reluctance elements and flux sources. Solution of the nonlinear magnetic circuit is obtained by an iterative method. The results allow the calculation of losses and torque of the machine. Due to the approximations used in the formulation of the MEC, this method is less accurate but faster than nonlinear transient magnetic FEM, and is more useful for the comparison of different machine designs during design optimization.