Abstract: A lithographic apparatus arranged to transfer a pattern from a patterning device onto a substrate includes two reference gratings provided in the substrate and two measurement gratings on top of the reference gratings, the measurement gratings being similar to the reference gratings, and oppositely biased in a single direction relative to the respective reference gratings. An overlay measurement device with an image sensor is used for obtaining pixel data of a measurement spot in each of the two measurement gratings. Asymmetry for each pixel in the measurement spot is measured, and from the pixel asymmetry measurements in associated pixels of each of the two measurement gratings an overlay value and a process dependent value is determined, as well as a quality indicator for the overlay value and the process dependent value.