Current method for deriving error synthesis and error compensation models is specific to individual machine configuration, it is usually time-consuming and prone to mistake. In this paper, a generalized error synthesis model generated by kinematic analysis and an error compensation model generated by inverse kinematics are presented. An algorithm was developed to automatically generate these models by symbolic manipulation for 2-5 axis machine tools. Experiments have been carried out to verify the effectiveness of this model formulation technique on a 3-axis machining center. This algorithm has also been applied to automatically obtain the error synthesis model and error compensation model for a 5-axis machining center.