The difference between generator and electric motor is given below: Mechanical power is converted into electrical power in generator , on the other hand electric power is converted into mechanical power in electric motor. Generators are made based on electromagnetic induction. Electric motors are made based on the effect of magnets on electric wires. Generators are mainly used in power generation plants. That means the use of the generator is very limited. Electric motors, on the other hand, are used almost everywhere and for many purposes.