Methods of compensating for position errors due to signal scaling, linearity, and offset between first and second members in a displacement transducer are provided, including: producing a first signal at the first member; producing a second signal at the first member; modulating the first signal at the second member to include at least one region with an invariant amplitude as the first and second members are displaced relative to one another along a measurement axis; determining a relation between a sample of the second signal and the invariant amplitude of the first signal as an indication of an error parameter; and generating a compensated sample based upon the determined relation.