This paper introduced a simple but effective three-level SVPWM algorithm. On the basis of this algorithm, a simple neutral-point balancing and narrow-pulse elimination algorithm without current sensor is proposed, and dead time is compensated in the algorithm also. The result of test verified that this algorithm is simple to be carried out, harmonics in output waveform are small, neutral-point potential can be controlled very well and narrow-pulse problem is solved as well. Because dead time is compensated at the same time, the output waveform is improved and output torque is strengthened at low frequency. Finally, good result was achieved on a three-level model inverter developed with TMS320LF2407 DSP.