In all type of industries Electric motors are used as main Electrical loads .It consumes more electrical energy .Hence it is important to ensure that these motors have been operated with minimum Power loss. During operating conditions of three phase induction motors, more factors are responsible for the reduction of motor performance characteristics .In three phase induction motor for a given out put power(provided by the manufactures), current drawn from the supply varies with respect to load conditions. This change in current makes the considerable change in air gap power, mechanical power, stator and rotor copper losses; by accurate calculation of various losses we can predict and obtain the required Efficiency of three phase induction motors. In this paper different losses were calculated for various Motor output power. From the obtained parameters Graphical representations of induction motor we can easily understand the importance of air gap power and mechanical power developed. Simulation of induction motor using MATLAB has been performed, the obtained results are presented.