Popular thermodynamic analyses including finite time thermodynamic analysis was lately developed based upon external irreversibilities while internal irreversibilities such as friction, pressure drop and entropy generation were not considered. The aforementioned disadvantage reduces the reliability of the finite time thermodynamic analysis in the design of an accurate Stirling engine model. Consequently, the finite time thermodynamic analysis could not sufficiently satisfy researchers for implementing in design and optimization issues. In this study, finite speed thermodynamic analysis was employed instead of finite time thermodynamic analysis for studying Stirling heat engine. The finite speed thermodynamic analysis approach is based on the first law of thermodynamics for a closed system with finite speed and the direct method. The effects of heat source temperature, regenerating effectiveness, volumetric ratio, piston stroke as well as rotational speed are included in the analysis. Moreover, maximum output power in optimal rotational speed was calculated while pressure losses in the Stirling engine were systematically considered. The result reveals the accuracy and the reliability of the finite speed thermodynamic method in thermodynamic analysis of Stirling heat engine. The outcomes can help researchers in the design of an appropriate and efficient Stirling engine. (C) 2015 Elsevier Ltd. All rights reserved.