Disclosed are various embodiments of circuitry and methods for generating interpolated signals in an optical encoder. The optical encoder configurations and circuitry disclosed herein permit very high resolution reflective optical encoders in small packages to be provided. Methods of making and using such optical encoders are also disclosed. According to one embodiment, the interpolated signals are generated through the use of signal generation circuitry, peak voltage generation circuitry, reference voltage generation circuitry, slope detection circuitry, and a clocked comparator that is configured to output interpolated output pulses.