Systems, apparatuses and methods for digital compensation for total harmonic distortion in a displacement sensor. The methods can include determining a total harmonic distortion compensation function for a displacement sensor; using the displacement sensor to measure a displacement by generating an output signal with total harmonic distortion; digitizing the distorted output signal to generate distorted output data; applying the total harmonic distortion compensation function to the distorted output data to generate undistorted output data; and outputting the undistorted output data.