The angle measurement technology is very important in precision manufacture, optical industry, aerospace, aviation and navigation, etc. Further, the angle encoder, which uses concept ‘subdivision of full circle (2π rad=360°)’ and transforms the angle into number of electronic pulse, is the most common instrument for angle measurement. To improve the accuracy of the angle encoder, a novel self-calibration method was proposed that enables the angle encoder to calibrate itself without angle reference. An angle deviation curve among 0° to 360° was simulated with equal weights Fourier components for the study of the self-calibration method. In addition, a self-calibration algorithm was used in the process of this deviation curve. The simulation result shows the relationship between the arrangement of multi-reading heads and the Fourier components distribution of angle encoder deviation curve. Besides, an actual self-calibration angle encoder was calibrated by polygon angle standard in national institute of metrology, China. The experiment result indicates the actual self-calibration effect on the Fourier components distribution of angle encoder deviation curve. In the end, the comparison, which is between the simulation self-calibration result and the experiment self-calibration result, reflects good consistency and proves the reliability of the self-calibration angle encoder.