Performance prediction plays an important role in the predesign stage of centrifugal compressors. A set of loss models is usually selected and grouped to fulfill the above prediction. To improve the defects of traditional prediction, we modified the outlet velocity and slip coefficient of the impeller by means of the energy average method to obtain theoretical work. A new volute loss model is proposed to replace the traditional semiempirical loss model by adopting a suitable loss model for each flow passage component. A proper performance prediction method is established for the centrifugal compressor studied in this paper. The overall performance of a single‐stage centrifugal compressor is predicted and compared with experimental and numerical simulation results. It is found that the prediction method proposed can better predict the overall performance of the centrifugal compressor. And the volute loss is the third largest loss after impeller loss.