Systems and methods for inductance compensation in a welding-type system include a reel configured to wind a welding-type cable to reduce a first portion of the welding-type cable extending from the reel, and to unwind to increase the first portion of the welding-type cable extending from the reel, wherein a second portion of the welding-type cable is at least partially wound around the reel when stored. A controller determines a first length of the first portion of the welding-type cable, calculates a first inductance of the first portion of welding-type cable extending from the reel based on the first length, determines a second length of the second portion of the welding-type cable, calculates a second inductance of the second portion of welding-type cable wound around the reel based on the second length, and calculates a cable inductance of the welding-type cable based on the first inductance and the second inductance.