This paper introduces an interface circuit to measure the small percentage variation of capacitor of a specially design capacitor sensor probe which is suitable for small gap measurement in different industrial environments. Only high-resolution LCR meter can measure the absolute value of small capacitor in laboratory environments but for industrial applications we need a highly sensitive interface circuit. This paper has proposed a technique to measure a small variation in the capacitor and provides an electrical signal output (i.e., voltage). Finally, the voltage output can be converted to measure the tiny gap or displacement which is related to the precise gap measurement instrument used in manufacturing or other industrial applications. The main electronics circuit is designed to fulfill the main target which is mentioned as capacitance-to-voltage converter (CVC). Without any physical contact, a capacitive sensor can detect the targets which may be solid or liquid so most of the contactless sensors utilize capacitive sensors that can detect the object which acts as the dielectric or conductive materials. Such type of sensor may be used to measure the changes in physical and chemical parameters of the different materials. This paper describes the design of the complete hardware and software implementation of the interface circuit for real-time gap measurement and is relatively inexpensive. In the first part, the design of the capacitor sensor probe is achieved through the theoretical calculation. In the second stage, the interface circuit is implemented with efficient data acquisition system.