In this paper, we investigate the eddy current losses in permanent magnets of surface mounted magnet synchronous machines. An original analytical method based on the magnetodynamic problem of a conductive ring is introduced and the obtained results are compared with the ones given by 3-D FEM analysis. The analytical model considers the effect of the width on the magnet loss. The axial effect is considered through a correction coefficient. The comparison includes the induced current density, the instantaneous losses, the impact of the circumferential segmentation, and the effect of the frequency on the magnet losses. By focusing on the importance of the skin effect and the magnetic reaction due to the magnet currents, the analytical model provides an accurate determination of the magnet eddy current losses.