A new analytic model for calculating of the air‐gap flux density (AGFD) of surface‐mounted permanent magnet synchronous machines (SMPMSMs) is presented. This proposed model is capable to taking into account the effects of magnetic saturation, armature reaction and stator slots opening. Furthermore, the real form of air‐gap distribution and spatial distribution of flux density of the PM poles are considered. The armature reaction effect is modeled using phasor diagram analysis of the motor as a function of the load torque, the armature current amplitude, power factor and the inverse air gap length. Also, saturation phenomenon predicted using the new non‐linear proposed function in connection with the armature reaction effects and the properties of the lamination material. It is shown that the proposed model capable to predicting acceptably the air gap flux density waveform of the SMPMSMs at lagging and leading power factors and with the load torque variation. The presented analytical approach is verified by the two‐dimensional finite‐element analysis (FEA) results.