In this paper, a finite element model is developed for the plane Magnetic Abrasive Finishing (MAF) process, by considering the problem as an axisymmetric magnetostatic problem. The model is validated with the available experimental results in the literature. A theoretical model for stock removal and surface roughness is developed by considering the indentation of the magnetic abrasive grain on the workpiece surface. The effect of various process parameters such as magnetic flux density, size of MAP, rotational speed of tool, finishing time, initial surface roughness and shape of abrasive grain on the finishing characteristics are studied. An attempt is made to determine an index of surface roughness for better understanding of the effect of above process parameters on the surface roughness.