Abstract: Embodiments of an AC magnetic tracker include frequency-based compensation for metal distortion. The tracker measures the position and orientation of the receiver relative to the transmitter in up to six dimensions, position (x, y, z) and orientation (azimuth, elevation, roll). In some embodiments, magnetic fields are transmitted at selected frequencies and the received magnetic fields are measured in-phase with the transmitted magnetic field. In other embodiments, magnetic fields are transmitted at selected frequencies and the received magnetic fields are measured both in-phase and in-quadrature with the transmitted magnetic field. In yet other embodiments, a transition signal is transmitted and the received decaying signal is measured. Other embodiments disclose some combination of these features. The metal's inductive limit, decay time constant and polarity sign are calculated from the received signals.