Sheet metal forming is one of the major processes in manufacturing and is broadly used due to its high degree of design flexibility and low cost. In the sheet metal forming process, draw-in (planar movement of a sheet periphery) frequently occurs and is one of the most dominated indicators on the success of a forming process. Currently, monitoring and controlling draw-in during each stamping operation requires either time-consuming setup or a significant die modification. Most devices have been used only in laboratory settings. Our goal is to design a draw-in sensor providing high sensitivity in monitoring; ease of setup, measurement and controlling; and eventually be implemented in industry. Our design is based on the mutual inductance principle, which we considered physical factors affecting the characteristics of the draw-in sensor. Two different configurations, single-transducer and double-transducer of our draw-in sensors have been designed and tested. The results showed good linearity, especially for the double-transducer case. The output of the draw-in sensor was affected by the type of sheet metal, dimension of the transducer, and the distance between the transducer and the testing sheet metal. It was found that the result was insensitive to the waviness of the sheet metal if sheet thickness was thin. The invention, implementation, and integration of the draw-in sensor will have an enormous impact on revolutionizing the control of stamping process, will provide solid ground for process variation and uncertainty studies, and ultimately will affect the design decision process.