The single phase induction motor has been commonly applied to small-sized electrical appliances because of its low cost, but it has low efficiency and large torque ripple, and it is incapable of speed control. However, two-phase induction motors have small torque ripple, high efficiency and variable speed control, because they are inverter fed. In this paper, the dynamic characteristics of the two-phase induction motor, such as the torque ripple, current and speed, are analyzed by using the time-stepping finite element method, and compared with the cage-type single phase induction motor.