Maxing out the technological limits in order to satisfy the customers’ demands and obtain the best performance of micro-devices and-systems is a challenge of today’s manufacturers. Dedicated system simulation is key to investigate the potential of device and system concepts in order to identify the best design w.r.t. the given requirements. We present a tailored, physics-based system-level modeling approach combining lumped with distributed models that provides detailed insight into the device and system operation at low computational expense. The resulting transparent, scalable (i.e. reusable) and modularly composed models explicitly contain the physical dependency on all relevant parameters, thus being well suited for dedicated investigation and optimization of MEMS devices and systems. This is demonstrated for an industrial capacitive silicon microphone. The performance of such microphones is determined by distributed effects like viscous damping and inhomogeneous capacitance variation across the membrane as well as by system-level phenomena like package-induced acoustic effects and the impact of the electronic circuitry for biasing and read-out. The here presented model covers all relevant figures of merit and, thus, enables to evaluate the optimization potential of silicon microphones towards high fidelity applications.