Correlative error is a kind of error between the cutter locations. This text presents a detailed analysis about correlative error in the principal axis method (PAM) that is a strategy of tool positioning for five-axis machining. It points out all the strategies based on linear projection can not avoid this interference and cannot be disregarded especially in the strategies with large stepover. Accurate calculating is made individually on linear and curve feed and formulae are developed. The author also gave the available application range of PAM and the algorithm for estimating correlative error.