During the past few decades, the numerical computation of magnetic fields has gradually become a standard in electrical machine design. Finite element method (FEM) has the advantage over previous design calculation procedures in that geometric variations and irregularities, saturation and eddy current effects can be modeled with a high degree of accuracy. Besides these advantages, the method does allow the designer to obtain a clearer understanding of the flux distribution in the machine and so indicates directly the corrective action to be taken if necessary. The paper describes a method for the design and transient analysis of induction motor using two-dimensional finite-elements. It relies on the decomposition of the rotor currents into harmonic distributions and the use of auxiliary circuit equations to take the time stepping into account.