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The radio frequency identification (RFID) is not designed primarily for indoor location sensing. However, location can be sensed in a viable and cost effective way by employing some algorithm. This paper is an attempt to extend the current LANDMARC algorithm by introducing the 'z' coordinate. The presented work utilizes the passive tag instead of active, which essentially cuts the cost of RFID tracking system drastically. The Received Signal Strength Indicator (RSSI) is provided by Intel R1000 transceiver directly, it eliminates the scanning time of existing LANDMARC algorithm. The presented result shows the correctness and the efficiency of the simulation. The error rate in the estimation of location is .5 only, which is acceptable in any tracking system. Furthermore, this algorithm can be coined with other route-tracking algorithm to give exact path of the tag.