The present invention relates to a system for measuring the impedance of a skin/electrode interface and selectively modifying the system gain of the monitoring circuit to compensate for errors introduced by variations in the skin/electrode impedance. More particularly, a simplified, low-cost method for measuring and compensating for skin/electrode impedance variations is provided. The skin/electrode impedance measuring circuit and determines a system gain correction factor which may be applied to the measured signal using a software algorithm, thereby eliminating the need to change the circuit topology with a programmable gain amplifier or programmable resistor network.