A low-error fixed-width multiplier receives a W-bit input and produces a W-bit product. In an embodiment, a multiplier (Y) is encoded using modified Booth coding. The encoded multiplier (Y) and a multiplicand (X) are processed together to generate partial products. The partial products are accumulated to generate a product (P). To compensate for the quantization error, Booth encoder outputs are used for the generation of error compensation bias. The truncated bits are divided into two groups, a major least significant bit group and a minor least significant bit group, depending upon their effects on the quantization error. Different error compensation methods are applied to each group.