An ergonomic, self contained hand-held thread inspection tool is power driven, which uses current draw as a surrogate for torque to initiate automatic reversal and gage withdrawal in case of jamming. The distal end carries the thread gage attached to a motor-driven spindle. A thread depth collar sleeve, adjustable by manual turning, concentrically surrounds the thread gage. When threaded into a blind hole or onto a protruding stud and operated, the distal end of the thread depth collar sleeve comes in contact with a part, pushing it against spring force. This movement is internally sensed, causing an indicator to flash, signaling “test OK”, while automatically reversing the spindle to withdraw the thread gage. If during the forward excursion of the thread gage a torque exceeding the pre-set torque limit is encountered, a buzzer is sounded signaling an over-torque problem and the spindle is simultaneously reversed for automatic gage withdrawal.