Interior Permanent Magnet Synchronous motors (IPMSM) with concentrated winding are superior to distributed winding in the power density point of view. But it causes huge amount of eddy current losses on the permanent magnet. This paper presents the optimal permanent magnet V-shape on the rotor of an interior permanent magnet synchronous motor to reduce the core losses and improve the performance. Each eddy current loss on permanent magnet has been investigated in detail by using FEM (Finite Element Method) instead of equivalent magnetic circuit network method in order to consider saturation and non-linear magnetic property. Simulation-based design of experiment is also applied to avoid large number of analyses according to each design parameter and consider expected interactions among parameters. Consequently, the optimal design to reduce the core loss on the permanent magnet while maintaining or improving motor performance is proposed by an optimization algorithm using regression equation derived and lastly, it is verified by FEM.