—Calculations of iron losses in the electrical machines are normally based on experimental characteristics of core material used in the machines. These methods with simplified machine analysis approximations are usually employed for calculation of total iron losses of electrical machines whilst local flux densities and corresponding local iron losses especially when designing of the machine and its cooling system are most important. In this paper, a Finite Element based simulation coupled with well known hysteresis model called Preisach model is used to calculate local iron loss of a synchronous machine. Calculation of iron loss particularly local loss with some accuracy, offers this opportunity to the designer such as to reduce losses where loss densities are high. This also leads to an optimum design of ventilation and cooling system.