A system and method for automatically calibrating a Time-of-Flight (TOF) transceiver system for proximity/motion detection, is provided. Moreover, the system comprises a component that senses a signal (e.g., current or voltage) at an light emitting diode (LED), an attenuator, a signal injector at a sensor and a switching circuit that toggles between a normal mode (e.g., when signal from the sensor is input to the sensor front end) and a calibration mode (e.g., when signal from the attenuator is input to the sensor front end). During the calibration mode, the sensor front end identifies the phase delay error within the signal path, including board and/or package parasitic, and accounts for the phase delay error during proximity/motion detection in the normal mode.