In this paper, a wave energy converter (WEC) is designed for a wave climate condition and its interior permanent magnet (IPM) generator is dimensioned for minimum life cycle cost (LCC). The single point absorber movement is simulated and the harnessed annual energy is determined to be 325 MWh. Possible IPM generator sizes are investigated using finite element calculations. Tradeoffs between the generator cost and the annual energy efficiency is performed in order to find the best economical solution. For the economical evaluation, the net present value method is utilized in order to obtain the LCC of the electric generation system of the WEC. Increasing the axial length of the machine 1.6 times results in the lowest LCC, with a 2.5% efficiency increase, which means an increment of approximately 1000 (sic) in the investment cost. Despite the higher investment cost, the LCC of the WEC generator decreases from 8070 (sic) to 6450 (sic), due to the lower losses.