This paper presents modeling of an inductive micro position sensing system and its analysis. The parameters affected the system response are excitation frequency, turn ratio, input position, air-gap size, load resistance, and geometric dimensions. To analyze the system, we try to establish a modeling based on an equivalent magnetic circuit with permeances. The model is verified by the experimental results from 1 kHz to 20 kHz. The magnetic circuit model is well fitted to the experimental data except a little error due to LC resonance in the large turn-ratio system. Modeling enables us to theoretically approach the response characteristics. Based on the magnetic circuit model, system parameters can be selected in such a way to obtain the required characteristics such as high sensitivity, good linearity, or small size.