Herein, a novel cavity design of racetrack integrated circular cavity established on metal-insulator-metal (MIM) waveguide is suggested for refractive index sensing application. Over the past few years, we have witnessed several unique cavity designs to improve the sensing performance of the plasmonic sensors created on the MIM waveguide. The optimized cavity design can provide the best sensing performance. In this work, we have numerically analyzed the device design by utilizing the finite element method (FEM). The small variations in the geometric parameter of the device can bring a significant shift in the sensitivity and FOM of the device. The best sensitivity and FOM of the anticipated device are 1400 nm/RIU and ~12.01, respectively. We believe that the sensor design analyzed in this work can be utilized in the on-chip detection of biochemical analytes.