A temperature compensated linear inductive distance sensor assisted by added noise is demonstrated. The mixed signal processing algorithm performs an effective interpolation over a low-resolution two-dimensional calibration table addressed directly by the digitized noise-affected signals of distance and temperature sensing modules without further arithmetic operations. The table entries are directly passed to the output digital-to-analog converter. The output noise will be cancelled by the intrinsic low-pass behavior of the power output stage. The operation distance, the linearity parameters, as well as the performance of the sensor exceed the standard of the respective industrial products.