System and methods for compensating a depth signal for a depth finder of a boat. In one embodiment, a compensation system is implemented between the depth finder and a transducer mounted on the boat. The compensation system receives a depth signal (i.e., a plurality of electrical impulses) from the transducer that directs sound waves toward the bottom of a body of water. The compensation system also monitors a change in elevation of the transducer, such as due to waves rocking the boat. The compensation system then compensates the depth signal based on the change in elevation, and provides the compensated depth signal to the depth finder.