Universal motors (UM) are widely used in the appliance industry. This paper presents the design methodology for new-generation universal-motors for vacuum cleaners. The mathematical model of the universal motor is formed and a computer program based on Matlab with Simulink is developed to calculate the performance of the motor. The Magnet 5.2 finite element analysis is used for design optimisation. Performance tests are conducted on a dynamic-loading test system. A design methodology is developed in MS Visual Basic form. Finally the validity of design methodology is evaluated on theoretical and experimental performance characteristics of two motors, a conventional 20000-RPM dry-wet motor and a new 40000-RPM dry-only motor.