Provided are a method and apparatus for location estimation of terminals in a wireless communication system. A method of operating a positioning apparatus may include (a) calculating distances between a terminal and first, second, and third base stations, (b) creating first, second, and third circles centered at locations of the first, second, and third base stations with radii corresponding to the distances, (c) calculating intersection distances between two intersections formed by the second circle, which is the smallest circle, and one of the first circle and the third circle and the other two intersections formed by the first circle and the third circle, and (d) determining one of the intersections corresponding to the shortest distance among the intersection distances as the terminal's location.