Method and apparatus for determining a signal-to-noise ratio (SNR) value from a readback signal, such as in a data storage device. A readback signal is obtained by a receiver (such as a data transducing head) coupled to a data recovery channel having a variable gain amplifier (VGA) and a threshold detector (TD). The data channel applies a selectable VGA gain value to the readback signal while errors are accumulated using a selectable error detection threshold from the TD. The SNR value is determined at least from a magnitude of the error detection threshold, and preferably from first and second VGA gain values using a linear regression model. The determined SNR value is highly correlated to classical SNR values obtained using external equipment such as an analyzer or oscilloscope, and is advantageously used in automated fashion during high volume manufacturing certification testing.