In this paper, a permanent magnet-assisted synchronous reluctance motor (PM-assisted SynRM) is designed to be compared with a synchronous reluctance motor (SynRM) used in a blower of an air conditioner in terms of motor performance and material costs. The same stator structure and winding configuration of both motors are utilized. The motor performances are determined by using a design software tool coupled with a finite-element (FE) method. The material cost analysis is based on the material costs obtained from the supplier. The motor performances of the designed PM-assisted SynRM are better than those of the SynRM in terms of efficiency and power factor with a slight increase of the material cost. The insertion of permanent magnets in the innermost flux-barrier layer achieves the highest torque per cost. Also, the inserted permanent magnets in this position could reduce the risk of demagnetization.