A spindle unit is very important in machine tools. It has a direct effect on machining accuracy. The static and dynamic characteristics of the spindle unit should be considered in the initial design stage for manufacturing of precision product. This study describes an investigation for deriving design stability of a 20,000rpm heavy-cutting spindle for precision machining. Static and dynamic characteristics of the spindle, such as deformation, stress, natural frequency and mode shapes are analyzed using finite element analysis. The 20,000rpm heavy-cutting spindle is confirmed that it is successfully designed through finite element analysis.