This work focused on the minimization of the effect of harmonics on three phase induction motor with performance effect through analysis executed by voltage source inverter using Fast Fourier Transform in MATLAB/Simulink 2015. Here the comparison analysis of Total Harmonic Distortion obtained for line voltage and current through simulation as well as mathematical model has been performed. It investigates the effect of Total Harmonic Distortion on the adjustable AC drive system. If Total Harmonic Distortion is minimized at the output terminal of the inverter then rotor current, rotor speed and torque performance is improved which results in smooth operation. The research work also includes the comparison analysis of line and phase voltage with respect to Total Harmonic Distortion. The performance comparisons are analyzed in term of Fast Fourier transform and Total Harmonic Distortion. Therefore, the result shows that total harmonics distortion of current without and with Active power filters (APF) is 32.23% and 7.09% also the total harmonics distortion of voltage without and with Active power filter (APF) is 69.39% and 26.58%. Thus, there is radical harmonics reduction when Active power filter (APF) is incorporated.