A novel signal processing technique using sinusoidal optical frequency modulation of an inexpensive continuous-wave laser diode source is proposed that allows highly linear interferometric phase measurements in a simple, self-referencing setup. Here, the use of a smooth window function is key to suppress unwanted signal components in the demodulation process. Signals from several interferometers with unequal optical path differences can be multiplexed, and, in contrast to prior work, the optical path differences are continuously variable, greatly increasing the practicality of the scheme. In this paper, the theory of the technique is presented, an experimental implementation using three multiplexed interferometers is demonstrated, and detailed investigations quantifying issues such as linearity and robustness against instrument drift are performed
