This paper describes an algorithm for finding steady states in AC machines for the cases of their two-periodic nature. The algorithm enables to specify the steady-state solution identified directly in time domain despite of the fact that two-periodic waveforms are not repeated in any finite time interval. The basis for such an algorithm is a discrete differential operator that specifies the temporary values of the derivative of the twoperiodic function in the selected set of points on the basis of the values of that function in the same set of points. It allows to develop algebraic equations defining the steady state solution reached in a chosen point set for the nonlinear differential equations describing the AC machines when electrical and mechanical equations should be solved together. That set of those values allows determining the steady state solution at any time instant up to infinity. The algorithm described in this paper is competitive with respect to the one known in literature an approach based on the harmonic balance method operated in frequency domain.