In interferometer measurements, the inconsistency of the optical range through which the reference and test lights pass introduces a retrace error in the phase measurement. In this study, we propose an iterative retrace error correction method in interferometry. A black-box model is established based on the linear and squared relationships between the retrace error and the tilt of the testing surface. The error correction phase is obtained using the least-squares method; thereafter, the global tilt is determined to iteratively correct the retrace error. The root mean square (RMS) of the residuals was > 3.2 × 10-5λ, >6.4 × 10-3λ, and >1.4 × 10-3λ in the simulation, experimentally computed retrace error correction in the planar measurement, and spherical measurement, respectively, proving that the retrace error can be effectively corrected.