The invention discloses an on-chip inductor equivalent circuit model used in an integrated circuit. The model comprises an input end, an output end, a series part and a substrate part. The series part and the substrate part are connected between the input end and the output end in parallel. The series part comprises a skin parasitic unit. The skin parasitic unit is connected to the two ends of a resistor of the series part in parallel. The skin parasitic unit comprises a skin parasitic capacitor, a skin parasitic resistor and a skin parasitic inductor which are sequentially connected in series. The invention also provides an extraction method of parameters of the on-chip inductor equivalent circuit model used in the integrated circuit. The on-chip inductor equivalent circuit model comprising the parasitic elements with the skin effect and the substrate transverse coupling effect can improve the fitting precision of simulation and test results; meanwhile, extraction method of the parameters of the circuit model is simpler, and high-precision simulation on on-chip inductors is achieved by the whole circuit model.