This paper describes a contact position detection method of a capacitive touch screen panel. The proposed method is composed of a circuited compensating algorithm generating an output signal having phase difference to an input signal associated with contact position, converts both input and output signals into digital waveform (5V logic), and calculates the phase difference. Finally, position information with the phase difference is obtained by using a low-cost microprocessor, which is convenient to compensate non-linearity error. The proposed method, that computes phase difference directly, has advantages in feasibility and cost because it minimizes the use of analog devices; rather, it utilizes, cost effective digital circuit. Analytical results are also given.