• A modelling, simulation and numerical analysis is presented in this paper for Fabry Perot Interferometer as multiple beam interferometer and it is implemented through MATLAB. • The effect of fiber optic divergence with FPI gap is analyzed. • The effect of geometrical deviation i.e. parallelism and flatness along with reflectivity is analyzed individually as well as their combined effect. • The above mentioned effects on the characteristic of FPI are calculated in terms of finesse and visibility. • The proposed analytical method is experimentally verified. An FPI is made with thin film broad band coated sapphire and commercially available wafer of Silicon. It is illuminated by a broad band optical signal through an optical fiber, and reflected signal is analyzed by grating based optical spectrometer. Fiber optic (FO) Fabry Perot Interferometer (FPI) is a common technique in the optical sensing domain. FPI is a multiple beam interferometer and thus has good finesse, i.e. better resolution of frequency selection/rejection in the transmission/reflection mode. It is well established that high reflectivity as well as flatness of both the interferometric surfaces along with high degree of parallelism among them are essential to achieve high finesse and high visibility in the FPI. But most of the FO-FPIs have low to medium finesse. To the best of our knowledge, quantitative analysis of the effect of flatness and parallelism on the FO-FPI is not reported earlier. In this paper a numerical analysis technique is presented to analyze the behavior of FO-FPI for the above discussed parameters. The number of interfering beams is limited by threshold intensity of the reflected beams. Individual effects of divergence, reflectivity and flatness of FPI surfaces, and parallelism error among both the surfaces as well as their combined effect are explored here. These effects are quantified in terms of variation in visibility and finesse of FPI. An FPI of gap 50 µm, optical fiber of 50 µm core with 0.21 NA and 51% reflectivity at both the surfaces are considered in the analysis. The characteristic of an ideal FPI is compared to FPIs having imperfections such as FO divergence, shape error of 50 nm, parallelism error of 100 nm and their combined effects. The calculated finesse of these FPIs are around 5, 4.136, 4.3, 3.198 and 3.17 respectively. To experimentally verify the model, an FPI is fabricated with broadband thin film coated sapphire and commercially available Silicon wafer as the two reflecting surfaces. The theoretical interference pattern closely matches with the experimental one of the fabricated FPI. [ABSTRACT FROM AUTHOR]