A method for performing a voltage drop analysis in a logic circuit that takes into consideration voltage drop--current drain dependency. The voltage drop analysis helps in accurately estimating power requirements of the logic circuit, designing optimal power grids and performing accurate static timing analysis for the logic circuit. The logic circuit has a plurality of gates. The method generates polynomial models for the power consumption, delay and transition time of each gate in the logic circuit. Thereafter, the polynomial models are solved to determine the supply voltage available at each gate of the logic circuit. The supply voltage, thus determined, is used to perform voltage drop analysis.