A method of calibrating a vehicular camera installed in a vehicle, with the camera having an imager and a camera microcontroller, includes searching for and/or determining a reference point in the images and adjusting the position of an overlay applied to displayed images depending on the reference point. The method may include comparing the determined reference point's actual position to its expected position and determining an offset amount with which to shift the overlay on the images displayed at an in-vehicle display responsive to the determined offset amount, and adjusting the position of the overlay applied to the images displayed at the in-vehicle display responsive to the determined offset amount.