A system for determining an initial rotor position of an interior permanent magnet (IPM) machine having a rotor and a stator is provided. The system may include a drive circuit in operative and electrical communication with each phase of the IPM machine, and a controller in electrical communication with the drive circuit. The controller may be configured to engage the drive circuit to selectively apply a voltage signal to each phase of the stator of the IPM machine, detect a current signal through each phase corresponding to the applied voltage signal, and calculate the initial rotor position based on a least squares analysis between at least the voltage signal, the current signal and a predefined inductance of the IPM machine.