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We analyzed the effect of a pixel and all the inter-electrode capacitances in a unit pixel of TFT-LCDs on the gray scale capability. The pixel and all the inter-electrode parasitic capacitances were obtained from the tree dimensional profiles of potential distribution and molecular director considering lateral fields generated at the edge of the pixel. To obtain the RMS and kickback voltages of the pixel, we constructed an equivalent circuit of the panel containing all the parasitic capacitances. The calculation was performed though H-SPICE. As results, we confirmed that the pixel becomes smaller, the effect of parasitic capacitances on the gray scale capability becomes larger.