This paper deals with the cost reduction design of a single-phase line-start permanent magnet(LSPM) motor. Due to high cost of the permanent magnet(PM), cost reduction can be effectively achieved by reducing PM volume. Therefore, motor characteristics according to the PM volume are calculated by using d-q axis equivalent circuit analysis, and the characteristic map is made. In the characteristic map, maximum torque and efficiency are shown according to motor parameters such as back electromotive force(back emf) and inductances; back emf represents the PM volume. Minimum back emf and inductances satisfying output performance are determined in the characteristic map. Then, motor geometry based on the prototype motor is optimized to get the determined parameters using response surface methodology(RSM) and finite element method(FEM). Through the presented cost reduction design, total PM volume is reduced to 32% of prototype model.