Provided is a method for a magnetic encoder having a magnetic body comprised of a magnetic rubber molded article, comprising a mixing step of mixing and then kneading a nitrile rubber (A), a ferrite magnetic powder (B) and a vulcanizing agent (C) to provide a magnetic rubber composition; and a molding step of molding and vulcanizing the magnetic rubber composition in a mold to which a magnetic field is applied to provide the magnetic rubber molded article, wherein a content of the ferrite magnetic powder (B) is 700 to 1500 parts by mass based on 100 parts by mass of the nitrile rubber (A); and a compressed density of the ferrite magnetic powder (B) is 3.5 g/cm3 or more. According to this method, a magnetic encoder having a magnetic body with high coercivity and residual magnetic flux density can be produced by vulcanizing a magnetic rubber composition having favorable moldability.