diff --git a/apps/openmw/CMakeLists.txt b/apps/openmw/CMakeLists.txt
index 5c5b0d16c..23ba78dba 100644
--- a/apps/openmw/CMakeLists.txt
+++ b/apps/openmw/CMakeLists.txt
@@ -69,7 +69,7 @@ add_openmw_dir (mwmechanics
     mechanicsmanagerimp stat character creaturestats magiceffects movement actors objects
     drawstate spells activespells npcstats aipackage aisequence aipursue alchemy aiwander aitravel aifollow aiavoiddoor
     aiescort aiactivate aicombat repair enchanting pathfinding pathgrid security spellsuccess spellcasting
-    disease pickpocket levelledlist combat steering obstacle
+    disease pickpocket levelledlist combat steering obstacle autocalcspell
     )
 
 add_openmw_dir (mwstate
diff --git a/apps/openmw/mwclass/npc.cpp b/apps/openmw/mwclass/npc.cpp
index c003e0b22..80900d465 100644
--- a/apps/openmw/mwclass/npc.cpp
+++ b/apps/openmw/mwclass/npc.cpp
@@ -22,6 +22,7 @@
 #include "../mwmechanics/spellcasting.hpp"
 #include "../mwmechanics/disease.hpp"
 #include "../mwmechanics/combat.hpp"
+#include "../mwmechanics/autocalcspell.hpp"
 
 #include "../mwworld/ptr.hpp"
 #include "../mwworld/actiontalk.hpp"
@@ -193,18 +194,6 @@ namespace
                     majorMultiplier = 1.0f;
                     break;
                 }
-                if (class_->mData.mSkills[k][1] == skillIndex)
-                {
-                    // Major skill -> add starting spells for this skill if existing
-                    const MWWorld::ESMStore& store = MWBase::Environment::get().getWorld()->getStore();
-                    MWWorld::Store<ESM::Spell>::iterator it = store.get<ESM::Spell>().begin();
-                    for (; it != store.get<ESM::Spell>().end(); ++it)
-                    {
-                        if (it->mData.mFlags & ESM::Spell::F_Autocalc
-                                && MWMechanics::spellSchoolToSkill(MWMechanics::getSpellSchool(&*it, ptr)) == skillIndex)
-                            npcStats.getSpells().add(it->mId);
-                    }
-                }
             }
 
             // is this skill in the same Specialization as the class?
@@ -223,6 +212,42 @@ namespace
                     + specBonus
                     + static_cast<int>((level-1) * (majorMultiplier + specMultiplier)), 100));
         }
+
+        int skills[ESM::Skill::Length];
+        for (int i=0; i<ESM::Skill::Length; ++i)
+            skills[i] = npcStats.getSkill(i).getBase();
+
+        int attributes[ESM::Attribute::Length];
+        for (int i=0; i<ESM::Attribute::Length; ++i)
+            attributes[i] = npcStats.getAttribute(i).getBase();
+
+        std::cout << npc->mId << std::endl;
+        std::cout << "Skills: " << std::endl;
+        for (int i=0; i<ESM::Skill::Length; ++i)
+            std::cout << skills[i] << std::endl;
+        std::cout << "Attributes: " << std::endl;
+        for (int i=0; i<ESM::Attribute::Length; ++i)
+            std::cout << attributes[i] << std::endl;
+        std::set<std::string> spells = MWMechanics::autoCalcNpcSpells(skills, attributes, race);
+        std::cout << "Spells: " << spells.size() << std::endl;
+        for (std::set<std::string>::iterator it = spells.begin(); it != spells.end(); ++it)
+        {
+            std::cout << *it << ", ";
+            npcStats.getSpells().add(*it);
+        }
+        std::cout << std::endl;
+
+        const char* compare[] = { "weary","dire noise","reflect","weak spelldrinker","absorb endurance","absorb personality","absorb speed","absorb strength","absorb willpower","fortify alteration skill","fortify illusion skill","fortify unarmored skill","fortify mysticism skill","fortify restoration skill","assured sublime wisdom","surpassing sublime wisdom","surpassing golden wisdom","blood gift","surpassing silver wisdom","surpassing unseen wisdom","surpassing green wisdom","powerwell","orc's strength","surpassing fluid evasion","poet's whim","rapid regenerate","dispel","shadow weave" };
+        int n = sizeof(compare) / sizeof(compare[0]);
+        std::set<std::string> compareSet;
+        for (int i=0; i<n; ++i)
+            compareSet.insert(compare[i]);
+        std::cout << "Compare: " << n << std::endl;
+        for (std::set<std::string>::iterator it = compareSet.begin(); it != compareSet.end(); ++it)
+        {
+            std::cout << *it << ", ";
+        }
+        std::cout << std::endl;
     }
 }
 
diff --git a/apps/openmw/mwmechanics/autocalcspell.cpp b/apps/openmw/mwmechanics/autocalcspell.cpp
new file mode 100644
index 000000000..5659959e8
--- /dev/null
+++ b/apps/openmw/mwmechanics/autocalcspell.cpp
@@ -0,0 +1,214 @@
+#include "autocalcspell.hpp"
+
+#include <climits>
+
+#include "../mwworld/esmstore.hpp"
+
+#include "../mwbase/world.hpp"
+#include "../mwbase/environment.hpp"
+
+
+namespace MWMechanics
+{
+
+    struct SchoolCaps
+    {
+        int mCount;
+        int mLimit;
+        bool mReachedLimit;
+        int mMinCost;
+        std::string mWeakestSpell;
+    };
+
+    std::set<std::string> autoCalcNpcSpells(const int *actorSkills, const int *actorAttributes, const ESM::Race* race)
+    {
+        const MWWorld::Store<ESM::GameSetting>& gmst = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>();
+        static const float fNPCbaseMagickaMult = gmst.find("fNPCbaseMagickaMult")->getFloat();
+        float baseMagicka = fNPCbaseMagickaMult * actorAttributes[ESM::Attribute::Intelligence];
+
+        static const std::string schools[] = {
+            "alteration", "conjuration", "destruction", "illusion", "mysticism", "restoration"
+        };
+        static int iAutoSpellSchoolMax[6];
+        static bool init = false;
+        if (!init)
+        {
+            for (int i=0; i<6; ++i)
+            {
+                const std::string& gmstName = "iAutoSpell" + schools[i] + "Max";
+                iAutoSpellSchoolMax[i] = gmst.find(gmstName)->getInt();
+            }
+            init = true;
+        }
+
+        std::map<int, SchoolCaps> schoolCaps;
+        for (int i=0; i<6; ++i)
+        {
+            SchoolCaps caps;
+            caps.mCount = 0;
+            caps.mLimit = iAutoSpellSchoolMax[i];
+            caps.mReachedLimit = iAutoSpellSchoolMax[i] <= 0;
+            caps.mMinCost = INT_MAX;
+            caps.mWeakestSpell.clear();
+            schoolCaps[i] = caps;
+        }
+
+        std::set<std::string> selectedSpells;
+
+        const MWWorld::Store<ESM::Spell> &spells =
+            MWBase::Environment::get().getWorld()->getStore().get<ESM::Spell>();
+        for (MWWorld::Store<ESM::Spell>::iterator iter = spells.begin(); iter != spells.end(); ++iter)
+        {
+            const ESM::Spell* spell = &*iter;
+
+            if (spell->mData.mType != ESM::Spell::ST_Spell)
+                continue;
+            if (!(spell->mData.mFlags & ESM::Spell::F_Autocalc))
+                continue;
+            static const int iAutoSpellTimesCanCast = gmst.find("iAutoSpellTimesCanCast")->getInt();
+            if (baseMagicka < iAutoSpellTimesCanCast * spell->mData.mCost)
+                continue;
+
+            if (race && std::find(race->mPowers.mList.begin(), race->mPowers.mList.end(), spell->mId) != race->mPowers.mList.end())
+                continue;
+
+            if (!attrSkillCheck(spell, actorSkills, actorAttributes))
+                continue;
+
+            int school;
+            float skillTerm;
+            calcWeakestSchool(spell, actorSkills, school, skillTerm);
+            assert(school >= 0 && school < 6);
+            SchoolCaps& cap = schoolCaps[school];
+
+            if (cap.mReachedLimit && spell->mData.mCost <= cap.mMinCost)
+                continue;
+
+            static const float fAutoSpellChance = gmst.find("fAutoSpellChance")->getFloat();
+            if (calcAutoCastChance(spell, actorSkills, actorAttributes, school) < fAutoSpellChance)
+                continue;
+
+            selectedSpells.insert(spell->mId);
+
+            if (cap.mReachedLimit)
+            {
+                selectedSpells.erase(cap.mWeakestSpell);
+
+                // Note: not school specific
+                cap.mMinCost = INT_MAX;
+                for (std::set<std::string>::iterator weakIt = selectedSpells.begin(); weakIt != selectedSpells.end(); ++weakIt)
+                {
+                    const ESM::Spell* testSpell = spells.find(*weakIt);
+                    if (testSpell->mData.mCost < cap.mMinCost) // XXX what if 2 candidates have the same cost?
+                    {
+                        cap.mMinCost = testSpell->mData.mCost;
+                        cap.mWeakestSpell = testSpell->mId;
+                    }
+                }
+            }
+            else
+            {
+                cap.mCount += 1;
+                if (cap.mCount == cap.mLimit)
+                    cap.mReachedLimit = true;
+
+                if (spell->mData.mCost < cap.mMinCost)
+                {
+                    cap.mWeakestSpell = spell->mId;
+                    cap.mMinCost = spell->mData.mCost;
+                }
+            }
+        }
+        return selectedSpells;
+    }
+
+    bool attrSkillCheck (const ESM::Spell* spell, const int* actorSkills, const int* actorAttributes)
+    {
+        const std::vector<ESM::ENAMstruct>& effects = spell->mEffects.mList;
+        for (std::vector<ESM::ENAMstruct>::const_iterator effectIt = effects.begin(); effectIt != effects.end(); ++effectIt)
+        {
+            const ESM::MagicEffect* magicEffect = MWBase::Environment::get().getWorld()->getStore().get<ESM::MagicEffect>().find(effectIt->mEffectID);
+            static const int iAutoSpellAttSkillMin = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("iAutoSpellAttSkillMin")->getInt();
+
+            if ((magicEffect->mData.mFlags & ESM::MagicEffect::TargetSkill))
+            {
+                assert (effectIt->mSkill >= 0 && effectIt->mSkill < ESM::Skill::Length);
+                if (actorSkills[effectIt->mSkill] < iAutoSpellAttSkillMin)
+                    return false;
+            }
+
+            if ((magicEffect->mData.mFlags & ESM::MagicEffect::TargetAttribute))
+            {
+                assert (effectIt->mAttribute >= 0 && effectIt->mAttribute < ESM::Attribute::Length);
+                if (actorAttributes[effectIt->mAttribute] < iAutoSpellAttSkillMin)
+                    return false;
+            }
+        }
+
+        return true;
+    }
+
+    ESM::Skill::SkillEnum mapSchoolToSkill(int school)
+    {
+        std::map<int, ESM::Skill::SkillEnum> schoolSkillMap; // maps spell school to skill id
+        schoolSkillMap[0] = ESM::Skill::Alteration;
+        schoolSkillMap[1] = ESM::Skill::Conjuration;
+        schoolSkillMap[3] = ESM::Skill::Illusion;
+        schoolSkillMap[2] = ESM::Skill::Destruction;
+        schoolSkillMap[4] = ESM::Skill::Mysticism;
+        schoolSkillMap[5] = ESM::Skill::Restoration;
+        assert(schoolSkillMap.find(school) != schoolSkillMap.end());
+        return schoolSkillMap[school];
+    }
+
+    void calcWeakestSchool (const ESM::Spell* spell, const int* actorSkills, int& effectiveSchool, float& skillTerm)
+    {
+        float minChance = FLT_MAX;
+
+        const ESM::EffectList& effects = spell->mEffects;
+        for (std::vector<ESM::ENAMstruct>::const_iterator it = effects.mList.begin(); it != effects.mList.end(); ++it)
+        {
+            const ESM::ENAMstruct& effect = *it;
+            float x = effect.mDuration;
+
+            const ESM::MagicEffect* magicEffect = MWBase::Environment::get().getWorld()->getStore().get<ESM::MagicEffect>().find(effect.mEffectID);
+            if (!(magicEffect->mData.mFlags & ESM::MagicEffect::UncappedDamage))
+                x = std::max(1.f, x);
+
+            x *= 0.1f * magicEffect->mData.mBaseCost;
+            x *= 0.5f * (effect.mMagnMin + effect.mMagnMax);
+            x += effect.mArea * 0.05f * magicEffect->mData.mBaseCost; // XXX spell.radius
+            if (magicEffect->mData.mFlags & ESM::MagicEffect::CastTarget) // XXX effect.flags & CAST_TARGET
+                x *= 1.5f;
+
+            static const float fEffectCostMult = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("fEffectCostMult")->getFloat();
+            x *= fEffectCostMult;
+
+            float s = 2.f * actorSkills[mapSchoolToSkill(magicEffect->mData.mSchool)];
+            if (s - x < minChance)
+            {
+                minChance = s - x;
+                effectiveSchool = magicEffect->mData.mSchool;
+                skillTerm = s;
+            }
+        }
+    }
+
+    float calcAutoCastChance(const ESM::Spell *spell, const int *actorSkills, const int *actorAttributes, int effectiveSchool)
+    {
+        if (spell->mData.mType != ESM::Spell::ST_Spell)
+            return 100.f;
+
+        if (spell->mData.mFlags & ESM::Spell::F_Always)
+            return 100.f;
+
+        float skillTerm;
+        if (effectiveSchool != -1)
+            skillTerm = 2.f * actorSkills[mapSchoolToSkill(effectiveSchool)];
+        else
+            calcWeakestSchool(spell, actorSkills, effectiveSchool, skillTerm); // Note effectiveSchool is unused after this
+
+        float castChance = skillTerm - spell->mData.mCost + 0.2f * actorAttributes[ESM::Attribute::Willpower] + 0.1f * actorAttributes[ESM::Attribute::Luck];
+        return castChance;
+    }
+}
diff --git a/apps/openmw/mwmechanics/autocalcspell.hpp b/apps/openmw/mwmechanics/autocalcspell.hpp
new file mode 100644
index 000000000..8ba7d833f
--- /dev/null
+++ b/apps/openmw/mwmechanics/autocalcspell.hpp
@@ -0,0 +1,31 @@
+#ifndef OPENMW_AUTOCALCSPELL_H
+#define OPENMW_AUTOCALCSPELL_H
+
+#include <cfloat>
+#include <set>
+
+#include <components/esm/loadspel.hpp>
+#include <components/esm/loadskil.hpp>
+#include <components/esm/loadrace.hpp>
+
+namespace MWMechanics
+{
+
+/// Contains algorithm for calculating an NPC's spells based on stats
+/// @note We might want to move this code to a component later, so the editor can use it for preview purposes
+
+std::set<std::string> autoCalcNpcSpells(const int* actorSkills, const int* actorAttributes, const ESM::Race* race);
+
+// Helpers
+
+bool attrSkillCheck (const ESM::Spell* spell, const int* actorSkills, const int* actorAttributes);
+
+ESM::Skill::SkillEnum mapSchoolToSkill(int school);
+
+void calcWeakestSchool(const ESM::Spell* spell, const int* actorSkills, int& effectiveSchool, float& skillTerm);
+
+float calcAutoCastChance(const ESM::Spell* spell, const int* actorSkills, const int* actorAttributes, int effectiveSchool);
+
+}
+
+#endif
diff --git a/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp b/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
index 6e515142d..073cb5f74 100644
--- a/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
+++ b/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
@@ -19,6 +19,7 @@
 #include <OgreSceneNode.h>
 
 #include "spellcasting.hpp"
+#include "autocalcspell.hpp"
 
 namespace
 {
@@ -155,19 +156,6 @@ namespace MWMechanics
                         npcStats.getSkill (index).setBase (
                             npcStats.getSkill (index).getBase() + bonus);
                     }
-
-                    if (i==1)
-                    {
-                        // Major skill - add starting spells for this skill if existing
-                        const MWWorld::ESMStore& store = MWBase::Environment::get().getWorld()->getStore();
-                        MWWorld::Store<ESM::Spell>::iterator it = store.get<ESM::Spell>().begin();
-                        for (; it != store.get<ESM::Spell>().end(); ++it)
-                        {
-                            if (it->mData.mFlags & ESM::Spell::F_PCStart
-                                    && spellSchoolToSkill(getSpellSchool(&*it, ptr)) == index)
-                                creatureStats.getSpells().add(it->mId);
-                        }
-                    }
                 }
             }
 
@@ -190,6 +178,88 @@ namespace MWMechanics
             }
         }
 
+        // F_PCStart spells
+        static const float fPCbaseMagickaMult = esmStore.get<ESM::GameSetting>().find("fPCbaseMagickaMult")->getFloat();
+
+        float baseMagicka = fPCbaseMagickaMult * creatureStats.getAttribute(ESM::Attribute::Intelligence).getBase();
+        bool reachedLimit = false;
+        const ESM::Spell* weakestSpell = NULL;
+        int minCost = INT_MAX;
+
+        std::set<std::string> selectedSpells;
+
+        const ESM::Race* race = NULL;
+        if (mRaceSelected)
+            race = esmStore.get<ESM::Race>().find(player->mRace);
+
+        int skills[ESM::Skill::Length];
+        for (int i=0; i<ESM::Skill::Length; ++i)
+            skills[i] = npcStats.getSkill(i).getBase();
+
+        int attributes[ESM::Attribute::Length];
+        for (int i=0; i<ESM::Attribute::Length; ++i)
+            attributes[i] = npcStats.getAttribute(i).getBase();
+
+        const MWWorld::Store<ESM::Spell> &spells =
+            esmStore.get<ESM::Spell>();
+        for (MWWorld::Store<ESM::Spell>::iterator iter = spells.begin(); iter != spells.end(); ++iter)
+        {
+            const ESM::Spell* spell = &*iter;
+
+            if (spell->mData.mType != ESM::Spell::ST_Spell)
+                continue;
+            if (!(spell->mData.mFlags & ESM::Spell::F_PCStart))
+                continue;
+            if (reachedLimit && spell->mData.mCost <= minCost)
+                continue;
+            if (selectedSpells.find(spell->mId) != selectedSpells.end())
+                continue;
+            if (race && std::find(race->mPowers.mList.begin(), race->mPowers.mList.end(), spell->mId) != race->mPowers.mList.end())
+                continue;
+            if (baseMagicka < spell->mData.mCost)
+                continue;
+
+            static const float fAutoPCSpellChance = esmStore.get<ESM::GameSetting>().find("fAutoPCSpellChance")->getFloat();
+            if (calcAutoCastChance(spell, skills, attributes, -1) < fAutoPCSpellChance)
+                continue;
+
+            if (!attrSkillCheck(spell, skills, attributes))
+                continue;
+
+            selectedSpells.insert(spell->mId);
+
+            if (reachedLimit)
+            {
+                selectedSpells.erase(weakestSpell->mId);
+
+                minCost = INT_MAX;
+                for (std::set<std::string>::iterator weakIt = selectedSpells.begin(); weakIt != selectedSpells.end(); ++weakIt)
+                {
+                    const ESM::Spell* testSpell = esmStore.get<ESM::Spell>().find(*weakIt);
+                    if (testSpell->mData.mCost < minCost) // XXX what if 2 candidates have the same cost?
+                                                        // Note iAutoPCSpellMax is 100 by default, so reachedLimit is very unlikely to happen
+                    {
+                        minCost = testSpell->mData.mCost;
+                        weakestSpell = testSpell;
+                    }
+                }
+            }
+            else
+            {
+                if (spell->mData.mCost < minCost)
+                {
+                    weakestSpell = spell;
+                    minCost = weakestSpell->mData.mCost;
+                }
+                static const unsigned int iAutoPCSpellMax = esmStore.get<ESM::GameSetting>().find("iAutoPCSpellMax")->getInt();
+                if (selectedSpells.size() == iAutoPCSpellMax)
+                    reachedLimit = true;
+            }
+        }
+
+        for (std::set<std::string>::iterator it = selectedSpells.begin(); it != selectedSpells.end(); ++it)
+            creatureStats.getSpells().add(*it);
+
         // forced update and current value adjustments
         mActors.updateActor (ptr, 0);
 
diff --git a/components/esm/loadspel.hpp b/components/esm/loadspel.hpp
index cbf5366c4..4bd2210ec 100644
--- a/components/esm/loadspel.hpp
+++ b/components/esm/loadspel.hpp
@@ -27,8 +27,8 @@ struct Spell
 
     enum Flags
     {
-        F_Autocalc = 1,
-        F_PCStart = 2,
+        F_Autocalc = 1, // Can be selected by NPC spells auto-calc
+        F_PCStart = 2, // Can be selected by player spells auto-calc
         F_Always = 4 // Casting always succeeds
     };