In this paper, a method for detecting broken rotor bar and stator winding fault in a low voltage squirrel-case induction motor using an air-gap flux variation analysis is proposed to develop a simple and low cost diagnosis technique. To measure the leakage flux in radial direction, a radial flux sensor is designed as a search coil and installed between stator slots. The proposed method is able to identify two kinds of motor faults by calculating load condition of motors and monitoring abnormal signals those are related with motor faults. Experimental results obtained on 7.5kW three-phase squirrel-cage induction motors are discussed to verify the performance of the proposed method.