A feeder movement compensation algorithm for use within a processor controlled sewing machine. The sewing machine configured with a reciprocating needle and thread, and including a stitch plate upon which fabric to be sewn is positioned beneath the needle and thread. The machine also includes a feeder mechanism driving a feed dog thru a movement. The feed dog movement pushes the fabric along the stitch plate and the reciprocating needle and thread form stitches in the fabric. During the stitch cycle, the feed dog movement completes at least one feeder stroke. The feeder stroke includes a portion of the feed dog extending above the stitch plate and moving along the direction of feed. The feeder stroke thus pushes the fabric along the stitch plate. The compensation algorithm calculates a theoretical feeder stroke length based upon a desired stitch. The compensation algorithm then calculates a modified feeder stroke length using the theoretical feeder stroke length and at least one feeder calibration data element. The modified feeder stroke length is then performed by the feed dog during the stitch cycle to form the stitch.