Magnetic encoder with relatively low pulse per rotation is generally used for detecting speed of the high-speed rotating machine. It is due to the fact of the mechanical problems of vibration and bearing stiffness and also the limit of maximum output pulse of the mounted encoder. The magnetic encoder is divided into two types, that is, toothed gear-wheel method and magnetic wheel method according to the shape of the rotation disk. In case of detecting speed by the tooth gear-wheel, the encoder itself can be acted as the additional inertia where the number of tooth determining the output pulse and the width of the wheel detecting the change of the magnetic flux density are relatively enough large considering the volume of the rotating machine. While the magnetic wheel method has the limit of the magnetizing number of the ring magnet, there is relatively few, if nv, the influence of inertia on the machine. In this paper, it is proposed a simple magnetic wheel encoder suited for the high speed rotating machine and the method of signal processing and the output characteristics are examined through the V/F operation of max 48,000(rpm) and 2.4(KW) spindle motor.