Abbe error is the inherent systematic error in all large-scale laser comparators because the standard laser axis is not in line with measured optical axis. Any angular error of the moving platform will result in the offset from the measured optical axis to the standard laser axis. This paper describes to an algorithm which could be used to calculate the displacement of an equivalent standard laser interferometer and to eliminate an Abbe error. The algorithm could also be used to reduce the Abbe error of a large-scale laser comparator. Experimental results indicated that the uncertainty of displacement measurement due to Abbe error could be effectively reduced when the position error of the measured optical axis was taken into account.