An analog encoder of one embodiment of the invention is disclosed that includes an input mechanism, a digital signal processing mechanism, and an output mechanism. The input mechanism is to receive and digitize different analog encoder signals. The digital signal processing mechanism is to generate inverse analog encoder signals from the different analog encoder signals, and to apply dynamically changeable gain and offset corrections in real-time. The output mechanism is to generate digital quadrature signals from crossing points among the analog encoder signals and the inverse analog encoder signals, and a position value based on a direction of the digital quadrature signals for external access.