A magnetic field sensor including at least one magnetic field sensing element configured to generate a magnetic field signal indicative of a magnetic field associated with a target and a detector responsive to the magnetic field signal and to a threshold level to generate a sensor output signal containing transitions associated with features of the target in response to the magnetic field signal crossing the threshold level further includes a threshold generator to generate an adaptive threshold. The threshold generator is configured to generate the threshold level to achieve a predetermined fixed hard offset and that adapts with a variation in the airgap in order to minimize an error between times or angles of the transitions of the sensor output signal over the variation in the airgap.