This paper deals with the temperature estimation of interior permanent magnet synchronous motor (IPMSM). A thermal equivalent circuit of IPMSM is proposed with considering eddy current loss of PM as well as core losses of rotor. Heat sources, which are core loss of stator/rotor core and eddy current loss of PM, are calculated by numerical method to enhance the accuracy of thermal estimation. The thermal equivalent model is represented by the thermal resistances and thermal capacitances, which are determined by motor configuration. Meanwhile, a temperature test is performed using prototype to determine the heat transfer. Finally, this thermal equivalent model is verified by a temperature test in a 25 kW 12-pole/18-slot IPMSM.