Herein, we have theoretically investigated the sensing performance-including enormous increase in the sensitivity and figure of merit (FOM)-of a magneto-optical surface plasmon resonance (MOSPR) sensor, which is based on the transverse magneto-optical Kerr effect (T-MOKE) in a ferromagnet coupled with a noble-metal grating. Specifically, we propose to use a CoFeB magnetic slab covered by a subwavelength, periodic gold grating configured as a magnetoplasmonic heterostructure. In such a device, sharp, Fano-like T-MOKE signals of high amplitude can be achieved due to the surface plasmon resonances (SPRs) excited in the presence of the gold grating, especially after optimizing the grating period. Tiny changes in the refractive index of an analyte surrounding the MOSPR sensor can be measured by analyzing the shift in the angle of incidence of the resonance positions of the T-MOKE signals. By calculating these resonance positions, we have demonstrated that it is possible to achieve a considerable sensitivity of 105° RIU-1 and a FOM as high as ∼102. Such a MOSPR sensing system can be exploited in biosensors with high detection limits.