In EDM, the thermal energy of the discharge causing material erosion which is supplied by the power source unit as electrical input. The discharge energy may be recognized by the current and voltage pulses on time transient discharge characteristic curve (V-I curve) during machining. However, the plasma resistance is very short for a smaller interelectrode gap in micro-EDM compared to the impedance of the circuit. Hence, direct probe-based measurement of current and voltage pulses may include the voltage drop across the stray impedance which causes variation in its exact value. Here, a modeling-based approach may help to analyze the energy interaction with the interelectrode gap. This article presents a theoretical modeling approach to predict the interelectrode gap based on gap voltage, gap current, and plasma characteristics. Initially, a simplified two-dimensional heat conduction equation (cylindrical form) was studied to understand the asymmetry of heat flow in Gaussian distribution. A numerical analysis of a single discharge pulse was considered by applying some basic assumptions. A numerical model has been developed to predict gap distance and MRR considering gap voltage, gap current, and plasma properties. The predicted model was validated against previously reported data from the literature. Later on, the impact of gap voltage on gap distance, plasma resistance, and material erosion rate was analyzed and discussed briefly.