In this study, the feasibility of using induced current bio-impedance technique as a method to determine and monitor bone mineral density (BMD) was theoretically evaluated using computerized simulation model. A 2D polar coordinates numerical solver was developed using the Finite Volume Method (FVM) in order to simulate the developed potentials over an axial CT cross section of a human thigh. Varying femur BMD were simulated by varying femur relative permittivity values. At the chosen excitation current of 1 ampere at a frequency of 20 kHz, the real component of the surface potential was found to be more sensitive to BMD variation than the imaginary component (3.9 microV g(-1) cm3 compared with 0.174 microV g(-1) cm3). The correlation between varying femur permittivities and the real component of the developed surface potential was found to be quadratic and influenced by the coil geometry and the measuring point location. Measurement sensitivity was improved either by taking the measuring point closer to the femur location or by minimizing the distance between the excitation coil and the femur. These results provide the basic principle that may enable a future use of bio-impedance technique for bone density evaluation and monitoring.