When the cost of energy increases it is important to increase the activities to reduce the energy consumption of the system up to the maximum possible limits. This proposal establishes a very low cost and time saving method to determine efficiency of induction motor at onsite for achieving above mentioned goal. Reduction in energy consumption is achieved by replacing energy efficient motor in the place of old less efficient motor. For auditing purpose pulling out the device from its working environment may cause losses in production in case of industries. On site estimations are helps To resolve such problems this paper describes an onsite method which can capable to estimate the efficiency of new as well as rewound induction motors. Motor’s efficiency computed by this method closely approaches the exact value this thing makes a greater confidence to estimate the saving potential.