A model of the IPMSM with magnetic saturation is presented. The model is based on flux linkage data from a finite element model where the anhysteretic BH curve is included in the material properties of the stator and rotor. The simulated flux linkage data are used in a modified IPMSM dq model using two look up tables. Using the modified IPMSM model with the flux linkage data, simulation results are obtained and corn- paired with experimental results. Both simulation and experimental results reveals a large but similar significant differential inductance variation. The inductance variation may influence sensorless saliency based methods which is based on the inductance in the d- and q-axis of the machine. The post processing of the results gave rise to a sensorless position estimation method based on principle component analysis (PCA).