An embodiment of the invention generally pertains to a method of compensating for temperature variations in an eddy current sensor signal. The method may include the steps of receiving an initial signal from an eddy current sensor (ECS) in response to a conductive element passing the ECS and sensing an ECS temperature and an ECS board temperature. The method may also include determining a subset of correction coefficients based on the ECS temperature and the ECS board temperature and determining a temperature correction factor from the subset of correction coefficients. The method may then compute a temperature corrected signal from the initial signal and the temperature correction factor.