A permanent deformation model for asphalt concrete (AC) layers based on shear properties is developed and calibrated in this study. The indirect tensile (IDT) strength and uniaxial compressive strength (UCS) were used to determine the cohesion and friction angle of asphalt mixtures. Five types of asphalt mixtures with various air-void and binder contents are tested under different loadings and temperature conditions. Multiple regression analysis was conducted to develop permanent deformation model of asphalt mixtures which is a function of the air void, binder content, stress, and number of load cycles, temperature, and frequency. The regression model was verified by comparing the predicted and measured plastic strain. It was found out that the regression model has a correlation coefficient of 0.96 in determining plastic strain. Through the field WesTrack database, the permanent deformation model was calibrated to be applied to AC layers. After calibration, it is observed that the correlation coefficient is 0.86 for the measured and predicted rut depth. Finally, the model is validated using the field rutting performance obtained from Long Term Pavement Performance (LTPP) data sets. Based on the validation study, it can be concluded that the proposed model can successfully predict the permanent deformation of various asphalt mixtures in a wide range of loadings and temperature conditions in the field.