The on-state voltage is an important electrical parameter of insulated gate bipolar transistor (IGBT) modules. Due to limits in instrumentation and methods, it is difficult to ensure accurate measurements of the on-state voltage in practical working conditions. Based on the physical structure and conduction mechanism of the IGBT module, this paper models the on-state voltage and gives a detailed method for extracting the on-state voltage. Experiments not only demonstrate the feasibility of the on-state voltage separation method but also suggest a method for measuring and extracting the model parameters. Furthermore, on-state voltage measurements and simulation results certified the accuracy of this method.