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This paper presents a planar displacement inductive sensor for the detection of small displacements (less than 0.5 mm) in a plane, usable in robotics. It also describes design, realization and the input inductance measurement of the sensor. Displacement in two directions could be detected using two sensor elements. Each element consists of a pair of meander coils. The variation of input inductance between coils serves as a measure of displacement. In order to achieve a wider measurement range of the sensor, gaps were inserted in a coil of sensor element. An additional extending of the measurement range was achieved by analyzing structures with less turns of meander coils, as well increasing width of conductive segments of the coil with inserted gaps. A new simulation tool in MATLAB for evaluation of the input impedance of the sensor was developed. A brief explanation of simulation tool algorithm was presented. © 2009 IEEE.