Interest in the production of printed electronics using a roll-to-roll system has gradually increased due to its low mass-production costs and compatibility with flexible substrate. To improve the accuracy of roll-to-roll manufacturing systems, the movement of the web needs to be measured precisely in advance. In this paper, a novel measurement method is developed to measure the displacement and velocity of the web precisely and directly. The proposed algorithm is based on the traditional single field encoder principle, and the scale grating has been replaced with a printed grating on the web. Because a printed grating cannot be as accurate as a scale grating in a traditional encoder, there will inevitably be variations in pitch and line-width, and the motion of the web should be measured even though there are variations in pitch and line-width in the printed grating patterns. For this reason, the developed algorithm includes a precise method of estimating the variations in pitch. In addtion, a method of correcting the Lissajous curve is presented for precision phase interpolation to improve measurement accuracy by correcting Lissajous circle to unit circle. The performance of the developed method is evaluated by simulation and experiment. In the experiment, the displacement error was less than 2.5 μm and the velocity error of 1σ was about 0.25%, while the grating scale moved 30 mm.