A method is provided to calibrate a monitor photodiode that measures the optical output power generated by an optoelectronic transceiver module that includes a burst mode laser diode. The method includes disabling the power control loop that controls an average optical output power generated by the laser diode during a laser burst. A series of logic zero signals is applied to a data input of the transceiver module and the logic zero level of the optical signal generated by the burst mode laser diode while applying the series of logic zero signals is measured. The logic zero bias level applied to the laser diode is adjusted until the measured logic zero level of the optical signal reaches a first desired value. While maintaining the optical signal at the first desired value, a first value of a current generated by the monitor photodiode in response to optical energy received from a back facet of the laser diode is stored. The first value of the current represents the calibrated value of the monitor current that will be measured when the laser generates a proper logic zero optical signal.