This paper presents an optimized fixed-point implementation of space-vector pulse-width modulation (SVPWM) for a two-level inverter. Bit-width fixed-point signals as well as circuit area are minimized by meeting the desired design accuracy. Most of the designs currently available are specified in floating-point precision to speed the process of simulating their functionality. However, area-optimized hardware implementation of these algorithms requires fixed-point precision. A generic function is used to formulate the precision required for each signal to get the proper accuracy. A non-convex optimization problem is solved for the number of required bit-widths for the signals. This solution has been simulated and implemented on FPGA to verify the resulting accuracy.