An accurate motor model is a basis for many control algorithms for permanent magnet synchronous motors (PMSM). The most commonly used model neglects the saturation of the magnetic material. Many attempts have been made to incorporate this nonlinear effect, however, the majority of proposed methods uses the field oriented approach, which does not explain the physical aspects of the saturation and requires complicated identification process. This work presents the model based on magnetic equivalent circuit built in a stator-oriented reference frame. The proposed solution uses physical reasoning to explain the influence of magnetic saturation on the performance of PMSM, while the identification process is limited to simple measurement of the stator saturation curve. Due to the simplicity of both identification and implementation, the model is a promising candidate for application in advanced control algorithms of permanent magnet synchronous motor.