Abstract: The invention provides a new approach which is better suited to FFT design as applied to multicarrier modulation systems such as OFDM. The signals are scaled so that overflow, rather than being completely avoided, occurs with low probability throughout the IFFT and FFT structures. The size of the error that results from an overflow depends on how overflow is handled in the DSP. To minimize the degradation, overflow should result in saturation of the value at the maximum positive or negative value option. This is equivalent to clipping the signal. Using the new technique, signals within the FFT structure are scaled to balance the effect of clipping and round-off. Clipping may result in comparatively large errors in a few signal values but because of the spreading effect of the FFT and because OFDM systems typically include error coding/correction, system performance depends on the total error or, in other words the total noise power, across all of the FFT outputs rather than on any individual value.