An electric machine includes a machine rotor circumscribed by a machine stator, and having a rotor shaft, rotor stack, and end cap which rotate about an axis. The end cap includes lobes equal in number to a number of pole pairs of the machine rotor. A position sensor assembly has a predetermined alignment with the machine rotor and stator. The sensor assembly includes a sensor rotor formed by the lobes and a sensor stator having a printed circuit board with conductive sine and cosine traces. Machine rotor rotation causes the sensor assembly to output an unmodulated sine and cosine signals to a controller, which then calculates a calibrated reference angle. A magnetic axis of an electrical phase of the machine is aligned with and bisects a peak of the sine trace. A direct axis of the machine rotor aligns with an edge of a lobe.