The usual way to shrink fit design for precision forging dies are made by thick wall cylinder approach; i.e., taking the pitch diameter of the gear as bore diameter of the die insert without considering gear tooth shape. However, the compressive pre-stress due to the shrink fitting causes dimensional variations on the gear profile of the die insert. The dimensional accuracy of the final product is dependent on the accuracy of the gear die. Therefore, the dimensional variations due to shrink fit must be pre-determined and the gear tooth profile on the die insert modified accordingly. In this study, the dimensional variations of the precision spur gear forging die because of shrink fitting are analyzed by finite element method and the results are compared with the experimental ones. The results show that the FE model is successful to simulate the cylindrical die and agree well with thick wall cylinder approach and the experimental measurements. However, both the experimental measurements and the finite element results of gear die predict much higher radial displacements than the results of cylindrical die. Therefore, the determination of shape change of the gear die profile is beyond the capability of the thick wall cylindrical approach.