An adaptive and dynamic forward error correction scheme for a communication channel is disclosed. The method and apparatus calculates the actual bit error rate for comparison with a target bit error rate. When a channel is performing better than required by the performance specifications, the forward error correction power can be reduced to provide greater throughput. If the calculated actual bit error rate is greater than the target bit error rate, then the forward error correction power is increased in an attempt to lower the calculated bit error rate. A feedback loop is employed to continually calculate revised bit error rates as the forward error correction power is increased or decreased.