This paper presents a phase-inductance-based position estimation method for interior permanent magnet synchronous motors (IPMSMs). According to the characteristics of phase induction of IPMSMs, the corresponding relationship of the rotor position and the phase inductance is obtained. In order to eliminate the effect of the zero-sequence component of phase inductance and reduce the rotor position estimation error, the phase inductance difference is employed. With the iterative computation of inductance vectors, the position plane is further subdivided, and the rotor position is extracted by comparing the amplitudes of inductance vectors. To decrease the consumption of computer resources and increase the practicability, a simplified implementation is also investigated. In this method, the rotor position information is achieved easily, with several basic math operations and logical comparisons of phase inductances, without any coordinate transformation or trigonometric function calculation. Based on this position estimation method, the field orientated control (FOC) strategy is established, and the detailed implementation is also provided. A series of experiment results from a prototype demonstrate the correctness and feasibility of the proposed method.