Magnetic sensors have been used in navigation for many centuries. During this time the effects of magnetic interference from ferromagnetic materials used in vehicle construction have become an increasing problem, and correction techniques have evolved progressively to allow the continued use of magnetic heading detection. The advent of the microprocessor has made it possible to take a fresh look at the problems of compass operation in vehicles and to devise more accurate processes for the correction of the indicated heading. The compass system described in this paper uses a mathematical representation of the magnetic environment based on fundamental physical principles to supply accurate heading information even in the most magnetically hostile land vehicles.