A sensor headroom control circuit includes a front end analog circuit, a digital compensation circuit, and a headroom state selection circuit. The front end analog circuit has configurable headroom and is configured to receive a sensor input signal and output a sensor digital signal. The digital compensation circuit is configured to adjust the sensor digital signal to compensate for an active headroom state of the front end analog circuit and produce a compensated sensor signal. The headroom state selection circuit is configured to select the active headroom state of the front end analog circuit responsive to a detected level of the compensated sensor signal.