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This paper presents the evaluation of saturation and cross-magnetization effects in an interior permanent magnet synchronous motor (IPMSM) over the entire range of direct- and quadrature-axis excitations. The conventional two-axis machine model is modified in order to include the influence of saturation and cross-coupling effects on the variation of self- and cross-coupling inductances in the direct and the quadrature axis. The two-axis machine model parameters are evaluated by experiments performed on an IPMSM using a controlled voltage-source inverter and are compared with parameter values evaluated by the finite-element method. The evaluation of two-axis machine model parameters reveals significant saturation and cross-magnetization effects in both axes, especially in the flux-weakening regime.