A distortion compensation method includes determining an undisturbed phase for at least one of a first position indication signal and a second position indication signal. The method includes determining an undisturbed ratio that relates the amplitude of the first position indication signal at a first frequency to the amplitude of the second position indication signal at a second frequency. The method also includes determining a disturbed amplitude of the position indication signal and adjusting a position indication based on the disturbed amplitude and phase, the undisturbed amplitude ratio, and the undisturbed phase. The method further comprises determining a relationship between the eddy current phase of the first position indication signal and the second position indication signal.